Dutch trust operator Intertrust has agreed to acquire Jersey-based Elian Group from private equity firm Electra Partners for £435m ($631.7m).
Elian, which employs more than 600 staff, provides offshore trust and corporate services. It has presence in 14 other jurisdictions serving 3,000 corporate, financial institution, investment fund and private clients globally.
Intertrust CEO David de Buck said: "The inclusion of Elian’s capabilities and geographic presence will consolidate Intertrust’s position in Capital Markets and Private Equity & Real Estate Fund Administration, add scale to our operations in several important jurisdictions, and bring us the leadership position in Jersey. With Elian on board, we will be able to offer more to our clients and investors worldwide. I look forward to working with Elian’s excellent team."
Intertrust said it will pay for the transaction through EUR100m in cash, EUR315m in debt and EUR155m in equity.
The Dutch firm added that synergies from the deal will come from a reduction in overlapping support functions, savings on insurance policies, regulatory costs and professional services, rationalisation of duplicate locations as well as cross-selling across client networks.
The acquisition is expected to significantly increase Intertrust scale in the UK (London), Ireland and Spain.
Elian CEO added: "Our combined service offering and network of offices globally will broaden and strengthen our capabilities to support our clients in all key international business locations."
The deal is expected to close by the third or fourth quarter of 2016, subject to shareholder and regulatory approvals.