Team acquires Jersey-based cash management business

Financial services group Team has Jersey-based provider of cash management services JCAP for a total net consideration of £2.95m.

Team said on Monday that it will pay £2.21m in cash for the firm, with the remainder of the acquisition price to be covered by the issue of £737,499 work of shares in the firm.

The AIM-listed group added that the net tangible current assets of the business, of approximately £700,000, were also being acquired on a pound-for-pound basis, in addition to the total net consideration.

Chairman Mark Clubb said: "JCAP is a natural fit with our plans for the development of Team. Cash management is a complementary service for many of our current and future clients, and JCAP is the leading provider of these service[s] in the Channel Islands.

"We are currently in a period of historically low interest rates where yield optimisation on cash balances generates minimal returns. Against this market background JCAP is a highly profitable business, and if interest rates increase, as seems likely, this will add significant momentum to profits as clients seek out JCAP's services to improve returns and risk management on their and clients' cash holdings."

As of 1120 BST, Team shares were up 4.0% at 78.0p.