MJ Hudson acquires Guernsey-based fund administrator

Specialist asset management service provider MJ Hudson has acquired the entire share capital of Saffery Champness Fund Services (SCFS), a Guernsey based fund administration business, from the accountancy group Saffery Champness.

The AIM-traded firm said the acquisition was expected to double its fund administration revenues in Guernsey, with a 50% increase in local staff numbers.

Completion of the transaction remained subject to approval by the Guernsey Financial Services Commission, and was expected to be “modestly accretive” to earnings per share.

It said SCFS, founded in 2007, provided fund administration and fund accounting as well as valuation and corporate secretarial work.

Based in the UK and northern Europe, its primarily alternative-asset clients had a combined assets under management of £418m.

A total of seven staff members would transfer to MJ Hudson as part of the transaction, with MJ also hiring “selectively” to support its growth.

On consolidation, the business would be managed by MJ Hudson’s local management team within its outsourcing division.

The board said the acquisition would add “strength and depth” to the group’s Guernsey operations, as well as additional expertise in fund systems.

It announced that the maximum consideration for SCFS would be £2.8m in cash, subject to performance criteria over a two-year period.

The acquired business generated revenues of £1.4m for the 12 months ended March, with an EBITDA margin comparable to MJ Hudson’s outsourcing division on a pro forma basis.

“This acquisition adds scale and expertise to our existing Guernsey operation,” said MJ Hudson’s managing director of international administration Mark Pattimore.

“Our dedicated funds infrastructure and alternatives expertise will benefit SCFS’ many fund clients.

“We look forward to supporting the team as it pursues an extended new business pipeline as part of the group”.

MJ Hudson said it would publish a trading update for the year ended June in early August.

At 1140 BST, shares in MJ Hudson Group were flat at 50p.