TIDMTEAM
RNS Number : 2481B
Team PLC
01 June 2023
1 June 2023
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TEAM PLC
("TEAM", the "Company" or the "Group")
Acquisition of Globaleye Wealth Management Group
Leading advisory business in high growth International Finance
Centres, including the United Arab Emirates, Singapore, Kuala
Lumpur (Malaysia) and Durban (South Africa)
TEAM plc (AIM: TEAM), the wealth, asset management and
complementary financial services group, is pleased to announce that
it has acquired the entire issued share capital of Globaleye BVI,
the parent company of the Globaleye Wealth Management Group
("Globaleye") (the "Acquisition"). Globaleye is an international
wealth management business, headquartered in Dubai, with five
further offices and total client assets under advice of GBP242
million.
Highlights
-- Acquisition of Globaleye for total consideration of up to GBP5.6 million
-- Entry into strategically important and high growth international finance centres
-- The Acquisition is expected be earnings enhancing in the
first year of ownership with potential for delivery of significant
benefits of scale, synergies and cross-selling opportunities
-- TEAM is also announcing separately today its unaudited
interim results for the six months ended 31 March 2023 and the
conditional acquisition of Thornton Associates ("Thornton"), a
leading financial planning business in the Isle of Man
-- Post-completion, these two acquisitions will take TEAM's
assets under management and advice to over GBP850 million
-- Thornton and Globaleye represent TEAM's fifth and sixth acquisitions in the last three years
Consideration
Initial consideration of GBP4.8 million ($6 million) (the
"Initial Consideration") which is payable on completion comprises
6,208,667 new ordinary shares of nil par value in TEAM ("Ordinary
Shares") ("Initial Consideration Shares"), at an issue price of 41
pence per Ordinary Share, and the issue of a convertible loan note
of GBP2,445,296, which is convertible into 5,964,138 new Ordinary
Shares in TEAM (the "Convertible Loan Note"). The Convertible Loan
Note is exercisable at the option of the Globaleye vendors, subject
to TEAM having sufficient share authorities in place and subject at
all times to the exercise not increasing the Globaleye vendors'
combined interest in the enlarged TEAM above 29.9%.
Additional consideration (paid in new TEAM shares, on a pound
for pound basis) will be payable by TEAM if Globaleye's net assets
are in excess of GBP1.0 million ($1.2 million) on completion.
Deferred consideration of up to GBP0.8 million ($1.0 million) is
payable by TEAM dependent upon Globaleye hitting a profit target
for the year ended 31 December 2023, and other operational tests.
The deferred consideration is payable in new TEAM shares to be
issued at the prevailing market price at the time of issue.
Globaleye Wealth Management - overview
-- Founded in 1996 by its Chairman, Tim Searle, Globaleye is a
boutique professional advisory firm specialising in wealth
management, insurance broking and complementary financial services,
providing advice to affluent, high and ultra-high net worth private
individuals, trustees, corporates and business owners
-- Headquartered in Dubai, Globaleye has 68 employees and
further offices in Abu Dhabi, Singapore, Durban (South Africa), and
Kuala Lumpur (Malaysia). In the UAE, it is regulated by the Central
Bank and the Securities and Commodities Authority, and by the
relevant local regulators in the other countries
-- Globaleye has consistently looked to expand, extending its
range of services with the acquisition of a Dubai-based wealth
management business in 2022 and successfully launching a network
proposition for third party advisers, leveraging its licences and
well-resourced infrastructure
-- More recently, Globaleye launched an innovative in-house
investment service and a digital wealth platform, the first of its
kind in the UAE
-- Globaleye has total client assets under advice of GBP242 million ($300 million)
-- In the year ended 31 December 2022, Globaleye generated
unaudited revenues of GBP8 million ($10 million), profit before and
after tax of GBP0.11 million ($0.14 million) and as at 31 December
2022, had net assets of GBP1.0 million ($1.2 million)
Acquisition Rationale
-- Dubai, Singapore and Abu Dhabi represent high growth markets
and opportunities for TEAM to execute on its buy-and-build
strategy. The increasing number of international expatriate
professionals and affluent retirees attracted by the high standards
of living, low tax and warm weather, makes for an active market for
long term savings, insurance and other financial services.
-- The UAE is a global hub, and a prime location to expand into other fast growing regions
-- Investment management sits at the core of TEAM, and, at
present, the majority of Globaleye clients' assets are managed by
third party discretionary fund managers. The TEAM Directors believe
this presents a clear opportunity to transition a proportion of
Globaleye's existing clients to TEAM's investment management
products, alongside extending to them the full range of services
offered to TEAM's existing clients
-- Integrating the Globaleye client base, which is predominantly
made up of the international expatriate community, should be a
natural cross over to an investment management business based in
Jersey
-- The Directors believe that cost synergies are achievable as
Globaleye benefits from access to shared management and support
services
-- Post-completion of the Acquisition and that of Thornton,
TEAM's assets under management and advice will increase to
approximately GBP850 million. The transaction is expected to be
immediately earnings enhancing upon completion and will further
contribute to TEAM's ability to reach cash-flow break even. The
consideration represents an estimated P/E multiple of 10x on 2023
profits, before revenue and cost synergies.
Matthew Moore, CFO and COO of TEAM, commented:
"The acquisitions of Globaleye and Thornton takes TEAM closer to
GBP1 billion under management and advice in our target markets and
extends our global footprint to seven countries. In doing so, we
believe we are carving out a valuable section of the high net worth
market who are living outside of their mainland home tax
jurisdiction and are in need of specialist financial advice, which
in the past has not been easily accessible. TEAM is filling that
space and we see significant scope to expand further."
Tim Searle, Chairman and Founder of Globaleye, said:
"We are delighted to announce that Globaleye Wealth Management
will be partnering with TEAM to provide an enhanced product
offering to its clients. There is a compelling strategic rationale
for joining forces and the companies are a strong cultural fit,
both with an entrepreneurial and performance-driven culture. Our
clients will be able to benefit from TEAM's highly successful
multi-asset portfolio management, bespoke portfolio and cash and
treasury management services. For our valued team at Globaleye
Wealth Management, there will be an opportunity to work within a
collegiate and client focused culture and to take advantage of
TEAM's complementary management and support services. I look
forward to joining TEAM as a substantial and supportive
shareholder."
Mark Clubb, Executive Chairman of TEAM highlighted:
"In May of last year, we stated our ambition to grow
internationally within the other Crown Dependencies as well as
further afield including in the Middle East and Asia. Our
multi-asset strategies have delivered robust returns in challenging
markets and this acquisition represents a major opportunity to
transition Globaleye clients from third-party managers to the TEAM
Asset Management model portfolios and bespoke portfolio services.
There will be cash and treasury management opportunities for
Globaleye clients which will drive benefits of scale and improve
client yields and revenues.
I look forward to welcoming Tim Searle and Patrick Liotard-Vogt
of Globaleye who will become substantial shareholders of TEAM. As a
Group, we continue to have an ambitious roll-out strategy which
requires ongoing support from current and future shareholders - I
shall continue to provide my support as a shareholder. Overall, I
believe these recent acquisitions are transformational, opening up
a much larger stage for TEAM."
Market Abuse Regulation
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this Announcement is being made on
behalf of the Company by Matthew Moore, Chief Financial Officer of
the Company.
Enquiries to
TEAM plc
Mark Clubb, Executive Chair
Matthew Moore, CFO and COO +44 1534 877 210
Hatstone (Legal adviser to TEAM)
Simon Vivian
Shore Capital (Nominated Adviser and Broker
to TEAM)
Tom Griffiths, Iain Sexton, Guy Wiehahn +44 20 7523 8000
Novella Communications (Financial Public
Relations)
Tim Robertson, Claire de Groot, Safia Colebrook +44 20 3151 7008
Hannam & Partners (Financial Adviser to
TEAM)
Giles Fitzpatrick, Ernest Bell, Richard Clarke +44 20 7907 8500
www.teamplc.co.uk
Background
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.
Globaleye results
Figures in the table below are taken from the unaudited
management accounts for the Globaleye group.
$'000 Year ended 31
December 2022
Gross income 10,096
---------------
Profit before
tax 144
---------------
Client AuA &
I $900 million
---------------
Net assets 1,200
---------------
Figures in the table below are an illustrative representation of
the Group's expectation for the acquired business in a full
financial year.
Figures in $'000 Illustrative
full year
Gross income 9,000
-------------
Profit before
tax 600
-------------
The financial illustrations set out in this announcement are
illustrative only, representing reasonable assumptions, based on
the financial information available at the time of the
announcement. However, all financial information provided is
subject to change and these illustrations may be different from the
actual financial position. No reliance should be placed on the
illustrations set out in this announcement.
END
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END
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