TEAM plc, the recently listed wealth, asset management and complementary financial services group, has acquired JCAP Limited (trading as JCAP Treasury Services), a Jersey based provider of cash management services
JCAP is focused on improving the return and mitigating the risks associated with the management of cash for institutions, professional advisers, trustees and high net worth individuals. JCAP has over £1.3 billion in assets under advice.
The total net consideration payable for the acquisition made on 2nd July 2021, is up to £2.95 million, of which £2,212,501 will be paid in cash and £737,499 in newly issued TEAM shares. The net tangible current assets of the business, of approximately £700,000 are being acquired on a pound-for-pound basis, in addition to the total net consideration.
The payment at completion is for £1,659,376 in cash, funded from existing company resources, with £553,124 in TEAM shares, being 740,461 new TEAM shares at an issue price of 74.7pence per share.
The deferred consideration payment of up to £735,500 is payable depending upon JCAP meeting certain performance targets in the period up to 31 December 2021, and payable by 31 March 2022, of which up to £553,125 is payable in cash and £184,375 in TEAM shares, based on the closing price in the 10 business days prior to the time of issue.
Mark Clubb (pictured), Executive Chairman of TEAM, commented: “At the time we listed, we told our shareholders that we had a well-researched and solid acquisition pipeline and that we would work through that pipeline with rigour and focus. The acquisition of JCAP is the first evidence of that. We continue to execute on our acquisition strategy as well as develop more accretive opportunities.
“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 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.”
Application will be made to the London Stock Exchange for 740,461 ordinary shares in TEAM, to be issued pursuant to the acquisition, to be admitted to trading on AIM. The ordinary shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of the company. It is expected that Admission will become effective and dealings in the 740,461 ordinary shares will commence at 8.00 a.m. on or around 8th July 2021.
Following Admission, taking account of the above issue of ordinary shares, the Company’s issued share capital will comprise 17,299,795 ordinary shares. From Admission, the figure of 17,299,795 may be used by Shareholders as the denominator for calculations to determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules.
