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PraxisIFM Group jas announced an agreement for the sale of its Fund Administration division to Sanne Group plc in an all-cash deal totalling in excess of £50m
The deal equates to 20% of PraxisIFM’s overall business revenue.
Proceeds will reportedly be deployed to reduce the Group’s bank borrowings, return the company to a progressive dividend policy, provide the opportunity for share buy-backs alongside a shareholder event and further enhance the Group’s proposition via continued investment in technology to compete with the market leaders and appeal to a broader range of clients in the Private Wealth and Corporate Services divisions.
Speaking about the announcement, Robert Fearis, Chief Executive Officer of PraxisIFM, said: “We very much see this agreement with Sanne as an opportunity to energise the Group by equipping it for the future and making PraxisIFM truly competitive in a rapidly developing market.
"As we enter our 50th anniversary year, this will enable us to focus on our core areas of Private Wealth and Corporate Services, setting the direction of the business and building a resilient business model that shareholders and future investors will appreciate.
"In Sanne we have found the perfect acquirer and we are confident that the business will continue to flourish under its ownership.”
Martin Schnaier, Chief Executive of Sanne, commented: “The PraxisIFM Fund Administration business is a step-change acquisition for Sanne and we are delighted to have successfully concluded this deal swiftly to maximise the opportunities that are presented.
"The synergies between the two businesses are clear and we will seek to not only maintain existing levels of service to clients of PraxisIFM but enhance them as the assets and relationships transfer over to us. We have world-class technology to deploy, a global network that can bring significant client-value and a complementary value set that will aide what we hope will be a seamless transition for clients."
Pictured top: Robert Fearis, Chief Executive Officer of PraxisIFM.
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