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Sanne to acquire Private Equity Administrators for up to €30.3m
StockMarketWire.com
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Alternative asset and corporate services provider Sanne said it had acquired private equity fund administrator Private Equity Administrators from its founders for up to €30.3 million.
The acquisition included an upfront payment of €27 million, of which 30% would be payable in Sanne shares, plus cash earn-out components based on performance up to the end of 2022, capped at €3.3 million.
Sanne also said it expected to deliver underlying earnings per share for the year ending 31 December in-line with expectations, 'despite the market backdrop remaining uncertain'.
Private Equity Administrators was a Scandinavian and Guernsey group that would ad over 55 employees and over €27 billion of assets under administration to Sanne, with offices in Denmark, Sweden and Guernsey.
'PEA is a strategically important acquisition that will further expand Sanne's geographical footprint introducing a new physical presence in the important Scandinavian markets of Denmark and Sweden, which have strong underlying growth characteristics,' Sanne said.
'The acquisition will also provide an opportunity to increase the scale of the group's Guernsey operations and client base.'
The business was expected to deliver revenues of around €6.7 million and earnings before interest, tax, depreciation and amortisation of €2.1 million for the year to 31 December.
On its outlook, the company said the market backdrop had continued to be impacted by the pandemic, as well as additional uncertainty relating to the US elections and Brexit negotiations.
'Accordingly, the delays to fundraisings and closings as well as the reduced transaction levels, seen throughout the second quarter, continued in the third,' it said.
'Although existing client activity has latterly begun to increase in the fourth quarter, full-year revenues are consequently expected to be marginally below the board's previous expectations.'
'Despite the delay to fundraising and closings, we again expect to deliver a robust new business performance with new wins anticipated to be similar to the first half, which had benefited from a largely unaffected market through the first quarter.'
'This result will provide good growth momentum for 2021 and beyond.'
At 8:08am: (LON:SNN) Sanne Group PLC share price was 0p at 599p
Story provided by StockMarketWire.com
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