Acquisition of Segue Partners

16 September 2021

JTC PLC

(the "Company" and together with its subsidiaries "JTC" or the "Group")

Acquisition of Segue Partners ("Segue")

A high quality bolt-on US fund services business adding further scale in a key growth market

JTC, the global professional services business, is pleased to announce the acquisition of Segue Partners ("Segue"), an innovative fund services provider head-quartered in St. Louis, Missouri, USA. The initial consideration will be settled in cash and JTC equity. A further consideration is available on the achievement of performance targets in 2022 and 2023.

Background to Segue Partners

Michelle Murray, Managing Director and Founder of Segue Partners, created the business in 2010 and has led its successful growth since. Michelle is a highly respected financial services professional and entrepreneur with over 28 years' experience in venture capital and public accounting industries.

Segue differentiates its offering based on quality of service and combines an intimate understanding of institutional limited partners with a 'white glove' investor relations service. The business provides a range of sophisticated fund solutions to meet the needs of private equity, venture capital, debt funds and family offices. Segue also delivers accounting services specifically designed to meet the needs of entrepreneurs, portfolio companies and start-ups.

Michelle will continue to lead the business, becoming a member of JTC's Institutional Client Services (ICS) US regional management board. All 12 other Segue employees will also join JTC, becoming part of the Group's Institutional Client Services (ICS) Division. The transaction is not subject to any regulatory approvals and completes with immediate effect.

Strategic rationale

Segue will enhance JTC's fund services presence in the US, providing an additional scalable platform that is well positioned for growth and complements the Group's existing US footprint, including its focus on world-class technology. Concurrently, JTC's more than 30 years of experience in serving listed funds and international clients in a global market that is increasingly complex and highly regulated will confer huge benefits to Segue's existing and future clients.

Segue's Midwest location facilitates expansion throughout North America and the company has strong and long-lasting relationships with a diverse range of clients across 10 US States and Canada. The acquisition brings with it a depth of asset class expertise, particularly within the venture capital space.

The US is an important growth market for fund services, including alternative asset classes such as private equity, venture capital, real estate, debt and hedge. The prevalence of outsourcing for fund services is lower than levels seen in Europe, offering further opportunities for strong growth and Segue, with its established reputation for client service excellence, is well positioned to capture new business with the backing of JTC's global scale and platform.

Financial Benefits

In the financial year ending 31 December 2020, Segue delivered revenue of $1.5m a 17% increase from the previous year and underlying EBITDA in excess of 20%. The business has continued to grow strongly and there are opportunities for further growth in revenues and margins as a result of leveraging JTC's scale, both in the US and internationally.

Nigel Le Quesne, CEO of JTC, said:

"We are very pleased to announce the acquisition of Segue, which is a high quality addition to our strategically important and fast-growing US business. Michelle and her team have built a reputation for delivering first-class service and strong growth year on year and we look forward to supporting and accelerating that as they become part of the Group. The cultural alignment with JTC is superb and we offer a warm welcome to Michelle, her team and all Segue's clients and partners."

Michelle Murray, CPA, Founder and Managing Director of Segue Partners, said:

"I founded Segue with the strong belief that there was a better way to meet the needs of clients based on delivering the perfect blend of experience, service quality and a results-orientated culture. As we seek to expand our business materially and capture opportunities that exists in the US market and beyond, JTC is the perfect partner to help us achieve our goals. Like Segue, JTC has the highest of standards and constantly strives to exceed client expectations. We are excited to become part of a dynamic Group, with such a deep-rooted culture and track record of success."

Ends.

Enquiries:

JTC PLC +44 (0) 1534 700 000

Nigel Le Quesne, Chief Executive Officer

Martin Fotheringham, Chief Financial Officer

David Vieira, Chief Communications Officer

Camarco +44 (0)20 3757 4985

Geoffrey Pelham-Lane

Monique Perks

Emily Shea-Simonds

About JTC

JTC is a publicly listed, global professional services business with deep expertise in fund, corporate and private client services. Every JTC person is an owner of the business and this fundamental part of our culture aligns us with the best interests of all of our stakeholders. Our purpose is to maximise potential and our success is built on service excellence, long-term relationships and technology capabilities that drive efficiency and add value. 

www.jtcgroup.com

Important Notices

The person arranging release of this announcement on behalf of JTC is David Vieira (Chief Communications Officer).

The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any other jurisdiction should inform themselves about, and observe, any applicable requirements. This announcement has been prepared for the purposes of complying with the Listing Rules and MAR and the information disclosed may not be the same as that which would have been prepared in accordance with the laws and regulation of any jurisdiction outside of England.

This announcement contains forward looking statements. No forward-looking statement is a guarantee of future performance and actual results or performance or other financial condition could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact they do not relate only to historical or current facts. They may contain words such as "may", "will", "seek", "continue", "aim", "anticipate", "target", "projected", "expect", "estimate", "intend", "plan", "goal", "believe", "achieve" or other words with similar meaning. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of these influences and factors are outside of the Company's control. As a result, actual results may differ materially from the plans, goals and expectations contained in this announcement. Any forward-looking statements made in this announcement speak only as of the date they are made. Except as required by the FCA or any applicable law or regulation, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement.