Cross-border financial services provider STM Group has sold its Jersey-based trust and company services businesses to Guernsey-headquartered Imperium Group.
The deal includes the acquisition of STM Fiduciare Limited alongside a number of unnamed “non-revenue generating support companies, including nominee companies”, the firm said.
The sale will be staged in two parts for a total consideration payment of £1.86m ($2.6m, €2.1m).
The first stage will see Imperium pay £1.26m upon completion, while the remaining £600,000 will be paid six months after the acquisition.
Additionally, STM will leave £460,000 within the companies, which represent the Jersey capital requirement.
The agreement allows a further consideration payment of 50% “of any revenue surplus above £1.15m of revenue that is categorised as recurring revenue”, STM said. The calculation will be based on the 12 months trading from the completion date.
‘Core activities’
The M&A deal for the Jersey businesses follows the sale of STM’s Gibraltar trust subsidiary, STM Fidecs Management Limited, to Sovereign Group for £2.45m in March 2021.
The firm said the sales are part of its strategy to exit the corporate and trust services space and focus on its core activities of pension administration and life assurance.
Alan Kentish, chief executive of STM Group, said: “We are delighted that the Jersey businesses and our colleagues that work within them, as well as our clients, have gone to a good home at Imperium.
“Imperium have confirmed that there will be minimal changes, whilst at the same time bringing new business opportunities, and I am confident that this will ensure a smooth and seamless transition to new ownership.
“For STM, exiting the Jersey trust and company businesses is an important deliverable to allow the executive to focus on our core activities of pension administration and provision of life assurance wrappers.
“The additional cash resources will allow for further investment in our organic growth initiatives, as well as further potential M&A activity.”
