The combination of JTC and NES Financial could create a global company servicing $130bn in assets across 19 countries
JTC, a Jersey-based private and institutional financial services provider, has agreed to acquire NES Financial, a San Jose, California-based financial technology firm for an undisclosed amount.
The acquisition is part of JTC’s strategy to develop its Institutional Client Services (ICS) business in the US.
Founded in 2005, NES Financial offers technology-enabled solutions and services for fund administration.
The company offers Specialty Financial Administration, a platform which could enable JTC’s expansion into the US market for servicing global institutional clients.
JTC also believes that NES Financial’s solutions will offer significant newfound value to its global clients.
The combination of JTC and NES Financial is expected to create a multi-jurisdictional platform with over 900 employees and more than $130bn assets under management across 19 countries.
JTC PLC CEO Nigel Le Quesne said: “With NES Financial, the JTC Group welcomes a market leader in the segments they serve and a platform that will be the foundation for our continued expansion into the U.S. market.
“At the same time, NES Financial’s proprietary eSTAC technology engine offers a strategic advantage that JTC can apply globally, for the benefit of all our clients.”
NES Financial will continue to operate under its current brand in US
Upon the deal’s completion, NES Financial will continue to operate under its current brand in the US market, offering its fund administration services for its clientele.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to be completed by the end of this month.
All the 58 employees of NES Financial will join JTC following the completion of the acquisition.
NES Financial chairman and CEO Michael Halloran said: “The transaction with JTC places NES Financial’s technology-driven, purpose-built solutions in the context of a platform with global reach and sophistication.
“Combining JTC’s first-rate institutional services, NES Financial’s expertise in investment vehicles, and a global fund administration and accounting capability will deliver significant newfound value to our clients.”
Last month, JTC signed an agreement to acquire SANNE’s private client services business. The acquisition includes high-quality clients and SANNE’s Jersey-based private client staff.
Subject to regulatory closing conditions, the deal could be closed in the second quarter of this year.