MJ Hudson has announced the signing of an agreement to acquire Bridge Consulting, a Dublin-headquartered provider of fund risk, regulatory compliance and corporate governance advisory services.
Under the terms of the deal, the buyer will pay up to EUR 12.00 million for the business and its subsidiaries, to be financed using existing cash reserves.
Of this amount, EUR 2.00 million will be in the form of cash, while an earn-out component totalling up to EUR 10.00 million may also be due.
Concerning the possible earn-out, 80.0 per cent of that amount will be in cash and 20.0 per cent in shares.
Completion of the acquisition, which is expected to have a positive impact on earnings from closing, requires approval from the Central Bank of Ireland.
MJ Hudson is buying the firm from current owners David Dillon and Paul McNaughton in order to enhance its specialist funds activities in London, Luxembourg and Guernsey.
Following completion, the target will continue to trade under its existing name, while all staff are expected to remain in their current roles.
Its outsourcing revenue is expected to increase significantly as a consequence of the purchase.
Commenting on the agreement, MJ Hudson chief executive Matthew Hudson said: “The acquisition of Bridge Group is a key milestone for MJ Hudson´s Manco and regulatory platform offering. It means we can now offer clients representation in each of the principal UK and European fund centres as Brexit approaches.”
He added: “The acquisition also gives us an extended Manco capability and a timely UCITS platform that complements our AIFM platforms in the UK, Luxembourg and Guernsey.”
Bridge director David Dillon said the move will enable the firm to strengthen its international footprint while offering an improved service to clients.
The target was founded in 2005 and now employs 27 people.
It provides regulatory compliance, domiciliation and risk services, as well as third party management services, to UCITS and alternative investment fund platforms.
The company’s customer base numbers 100 asset managers, with assets of more than EUR 120.00 billion.
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