TIDMTEAM
RNS Number : 1179U
Team PLC
01 December 2021
1 December 2021
TEAM PLC
Acquisition of Omega Financial Services
TEAM plc ("TEAM"), the wealth, asset management and
complementary financial services group, is pleased to announce the
acquisition of the entire issued share capital of Omega Financial
Services Limited ("Omega") (the "Acquisition"). Omega is a
Jersey-based IFA, specialising in retirement planning, mortgage
advice, life assurance and bespoke investment advisory services. An
initial consideration of GBP2.0 million is payable in cash, plus
further deferred consideration of up to GBP2.0 million in a mixture
of cash and new shares in TEAM. The transaction is subject to
approval by the Jersey Financial Services Commission.
Acquisition Rationale
-- TEAM was established to become a leading wealth and asset
management business via (amongst other paths) acquiring wealth
management businesses which add to scale and breadth of the
services provided to clients
-- Omega is a successful Jersey-based IFA providing financial
and investment advice to over 500 clients, with assets under advice
("AUA") of GBP77 million (as at 30 Sept 2021) and a solid track
record of profitability
-- In the 12 months to 31 December 2020, Omega generated
revenues of GBP1.1 million and made a net profit before directors'
payments of GBP0.85 million
-- Omega generates a run-rate EBITDA of approximately GBP0.7
million, which on a pro forma basis is expected to be a significant
step for TEAM towards becoming cashflow positive
-- In the 12 months to 14 November 2020, Omega reported profit
before tax of GBP0.3 million and had net assets of GBP0.4
million
-- On completion of the transaction, TEAM will have assets under
management and advice of GBP372 million, with a further GBP1.6
billion of cash under advice
-- The Acquisition is an ideal fit with TEAM's existing
businesses and investment expertise, expanding the Jersey client
base as well as introducing financial advice expertise into the
Group, which we expect to be of relevance to existing and future
investment management clients
-- The Acquisition follows the Group's acquisition of Jersey
based cash management business, JCAP, in July, which has now been
successfully integrated
-- The Acquisition is expected to complete in early 2022
Consideration for the Acquisition
-- The initial consideration will be due at completion and will comprise GBP2.0 million in cash
-- The deferred component is split over two equal payments,
payable subject to certain performance conditions being met, each
made up of GBP0.785 million in cash and GBP0.215 million in
Ordinary Shares, for a total net consideration of up to GBP4.0
million. The net tangible current assets of Omega, less the
regulatory capital required in the business, will be acquired on a
pound for pound basis. This is expected to be a total cost of
nil.
-- The initial cash consideration will be funded from TEAM's
existing cash resources, and the deferred consideration cash
payments from both existing cash resources and earnings from
Omega
Matthew Moore COO and CFO of TEAM, commented:
"Omega has a first-class reputation amongst its clients, is a
natural partner with TEAM Asset Management for investment
management services, and is therefore an ideal entry point into the
advice space in Jersey for TEAM plc.
We believe it is a good transaction for TEAM plc shareholders,
staff and clients. and we are very much looking forward to working
side by side with the Omega team and seeing the future benefits of
our joint efforts."
TEAM plc
Mark Clubb / Matthew Moore
Telephone: +44 (0) 1534 877210
Hannam & Partners
(Financial Adviser to TEAM)
Giles Fitzpatrick / Richard Clarke / Ernest Bell
Telephone: +44 20 7907 8500
Canaccord Genuity Limited
(Nominated Adviser and Broker to TEAM)
Bobbie Hilliam / Alex Aylen
Telephone: +44 20 7523 8000
Novella Communications
(Financial Public Relations)
Tim Robertson / Fergus Young
Telephone: +44 20 3151 7008
Information on TEAM
TEAM plc is building a new wealth, asset management and
complementary financial services group. With a focus on the UK,
Crown Dependencies and International Finance Centres, the strategy
is to build local businesses of scale around TEAM plc's core skill
of providing investment management services. Growth will be
achieved via targeted and opportunistic acquisitions, through team
and individual hires, through collaboration with suitable partners,
and organic growth and expansion.
www.teamplc.co.uk
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