JTC agrees to Permira acquisition
London-listed trust and corporate services provider JTC has agreed to be acquired by private equity firm Permira. The deal, valued at £2.3bn, places a substantial premium on JTC’s share price.
In JTC’s announcement to the London Stock Exchange, it noted that Permira is a long-standing investor in the FACTS sector, and that the deal will “unlock further opportunities for growth”. Other deals in the sector undertaken by Permira have included: Alter Domus; Tricor (now Vistra); and Kroll.
JTC also noted that its ability to fund further M&A through the public market was limited, putting it at a disadvantage to competitors. “The JTC Board believes that private ownership with a well-resourced and supportive partner in Permira, which shares our long-term vision and aspirations, will open up these enhanced growth opportunities,” stated the announcement.
Further details can be found here.
Endrix wins external investment
French accounting and advisory firm Endrix is to gain investment from mid-market private equity firm IK Partners.
IK will take a significant stake in Endrix, with the latter having already driven its own growth through deals to acquire Zalis, Mageia Partners and Exelmans. Endrix received investment from Bpifrance back in 2021.
The deal will drive Endrix’s digital transformation journey, and drive further local and international deals.
“We are convinced that the group has a key role to play in the consolidation of the accountancy sector, both in France and internationally, having already made several key acquisitions,” stated IK partner Arnaud Bosc.
Further information can be found here.
EU sustainability reporting pushback
The introduction of sustainability reporting rules in the EU has been delayed. Earlier this year an EU ‘Stop the Clock’ directive set out to push reporting rules out to either 2028 or 2029, depending on whether the companies are large EU organisations or non-EU parent companies.
Failure to set a final position in October has opened the rules up for further debate. This includes raising employee thresholds and reporting standards being simplified.
Further details can be found here.
Compliance drives corporate services deals
With Chartered Financial Partners’ (CFP) acquisition of McGrath Tonner Corporate Services in Cayman, it is noted that increased regulation is driving deals.
Talking to the Cayman Compass, CFP CEP Linburgh Martin stated that time and financial resources are increasing under the burden of regulation, driving a need for economies of scale. Martin said that “Cayman has worked hard to meet the global regulatory standards, especially coming off the FATF grey list, and we should be proud of that”, but regulation has increased.
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