JTC has agreed to acquire Citi Trust, the global fiduciary and trust administration services business, from Citigroup in a deal worth $80m.
Citi Trust, which operates in seven key jurisdictions including New York, Delaware, South Dakota, Jersey, Singapore, Switzerland, and the Bahamas, manages assets exceeding $70bn.
It is said to serve more than 2,000 ultra-high-net-worth clients with an average relationship tenure of around 12 years.
The fiduciary and trust solutions provider is said to be one of the oldest fiduciary businesses globally. It is claimed to be the first US trust company originally founded in 1822 in New York, with its first international trust company founded in 1960.
Citi Private Bank head Ida Liu said: “The decision to sell our personal trust administration and fiduciary business allows us to focus our resources on areas that will create impact for our global clients and drive growth for our Wealth business.
“We will continue to provide clients with leading investment management, wealth planning, lending and banking services, while JTC will provide the highest quality trustee and fiduciary services.”
Through the acquisition of Citi Trust, JTC aims to enhance its existing operations as well as bolster its position as a leading independent provider of global trust services.
The transaction is also expected to significantly expand JTC’s US trust platform, complementing recent acquisitions of New York Private Trust Company, South Dakota Trust Company, and First Republic Trust Company of Delaware.
Besides, the acquisition is expected to contribute to mid-single-digit earnings per share (EPS) accretion in 2025 and high single-digit EPS accretion in 2026.
Upon the completion of the deal, Citi Trust’s management team and global workforce will join JTC. This will bring the latter’s headcount to over 420.
JTC intends to fund the acquisition through the company’s existing cash reserves and committed debt facilities.
JTC CEO Nigel Le Quesne said: “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.”
Subject to regulatory approvals, the transaction is anticipated to be completed in the first half of 2025.