Sanne to buy Luxembourg Investment Solutions and Compliance Partners
Sanne, a provider of alternative asset and corporate administration services, has entered into an agreement to buy Luxembourg Investment Solutions (LIS) and Compliance Partners for up to €100m in a deal that is expected to be immediately earnings enhancing.
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Headquartered in Luxembourg with a branch in Dublin, LIS is a third party alternative investment fund manager with assets under administration in excess of €8.3.bn. Compliance Partners primarily provides unregulated services, including corporate services, for both LIS and external clients, enabling clients to have a physical presence in Luxembourg.
Sanne said the deal is consistent with its strategy to supplement strong organic growth with complementary acquisitions which enable the business to take advantage of a consolidating market and diversify its client base, geographic positioning and service offering. In addition, it will provide the group with a leading platform in Luxembourg, a globally significant market, from which to broaden its services to existing alternatives clients and improve its competitive positioning in attracting new clients.
The initial consideration payment of €55m will be 64% payable in cash and 36% payable in Sanne shares. The earn-out payment is expected to be paid in 2019 and is based on the acquired companies' performance in the year ended 31 December 2018. The total consideration payable is subject to an absolute cap of €100m.
Chief executive Dean Godwin said: “The addition of LIS and CP into our existing Luxembourg operations is a significant development for us. The acquisition will add further quality and scale to our existing business whilst also deepening our alternative asset service offering with a market leading AIFM service in Luxembourg. LIS and CP are led by a highly experienced and respected team that has established a platform with a focus on providing its clients with the highest quality services. This closely aligns with our own philosophy. Luxembourg is an important jurisdiction for us as we continue to work with, and service, international alternative asset managers launching funds in Europe."