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07 Apr, 2021 16:51 07 Apr, 2021 17:06

Sanne to buy Texas-based STRAIT for up to $45m, raise £80m in placing

Sanne said on Wednesday that it has agreed to buy Texas-based STRAIT, a private equity and hedge fund administration business, for up to $45m, as it announced a placing to raise around £80m to push ahead with its acquisition strategy.

The company, which provides administration services to alternative asset managers, said the deal will provide it with increased scale, capability and client coverage in North America, the largest and one of the fastest-growing end markets for alternative asset administration.

STRAIT adds more than 50 employees, more than 60 new client groups and in excess of $20bn of assets under administration to Sanne's platform as well as a new office in Dallas. In the year to the end of December 2020, STRAIT generated revenues of $9.4m.

Sanne will pay $32m upfront, around 30% of which is payable in shares, and an earn-out component consisting of cash and Sanne shares, based on financial performance up to 31 March 2022. This is capped at $13m.

The company also said it plans to raise £80m in a placing of new ordinary shares to institutional investors which represents around 8.5% of its existing issued share capital. Proceeds will be used to "better position Sanne to continue its disciplined acquisition strategy, enhancing the group's financial flexibility and competitiveness".

"Acceleration of growth through selected acquisitions is an integral part of the group’s strategy and has provided a meaningful contribution to the company's financial performance and strategic development since IPO," Sanne said. "In line with this strategy, over the last 12 months, Sanne has acquired six businesses, including the acquisition of STRAIT, announced separately today and the recent acquisitions of Private Equity Administrators and Alternative Assets Accounting Software Inc."


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.