PraxisIFM completes sale of fund administration division

Deal with Sanne Group will allow firm to focus on wealth management and corporate services.

By Richard Schwartz

Sanne Group has agreed an all-cash deal totalling £54 million for the purchase of PraxisIFM Group’s fund administration division. This follows the original announcement of the sale in July.

“On behalf of the Board, I would like to extend our best wishes to the funds team as they embark on their new careers with Sanne,” said Iain Torrens, chairman and non-executive director of PraxisIFM

PraxisIFM will concentrate on growing and developing its core divisions of Private Wealth and Corporate Services. At the same time, the company plans to return a significant amount of the proceeds of the sale to shareholders and will deploy the balance initially to reduce bank borrowings and fund the ongoing expansion of its business and focus on technology.

As part of the terms of the transaction, £5.5 million of the total consideration will now be held in escrow and is expected to be released in July 2022, subject to certain performance criteria.

Earlier this year, Sanne itself rejected an all-cash takeover bid by private equity group Cinven.

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