JTC buys Citi Trust for $80m

(Sharecast News) - Professional services provider JTC said on Monday that it has bought Citi Trust - the global fiduciary and trust administration services business - from Citigroup for $80m. JTC said Citi Trust provides a full suite of fiduciary solutions and has extensive cross-border experience, operating from seven high-quality trust jurisdictions globally including New York and Switzerland, among others.

The total assets under administration serviced by Citi Trust are in excess of $70bn.

JTC said it's "highly complementary" to its existing footprint and cements the company's position as "the leading independent provider of global trust services".

The acquisition is expected to deliver mid-single digit earnings per share accretion in 2025 and high single digit EPS accretion in 2026, the first full year of ownership.

JTC chief executive Nigel Le Quesne said: "Citi Trust is one of the most established and well-respected providers of trust services globally and we are delighted to have been chosen as the future custodian of its employees and clients. The acquisition is extremely complementary to JTC's existing footprint.

"It is a transformational transaction for the group and our private client services division, increases our presence in key growth markets in the US, Europe and Asia, and brings further resilient annuity driven revenue to the group.

"We look forward to welcoming their highly experienced team to JTC, so that together we can capture the future growth opportunities that the global trust administration market offers."