Bermuda-headquartered financial services firm Apex Group, one of the largest management companies in Luxembourg, has agreed to acquire MJ Hudson PLC, a troubled London-listed provider of management company services in Ireland and Luxembourg, for about 40 million pounds (45.2 million euro), less than half its value at the time of its 2019 IPO.
Apex has agreed to pay 15 million pounds for MJ Hudson’s data and analytics services and 25 million pounds for its services business, according to a filing to the London Stock Exchange. The bulk of this amount - 13 million pounds - relates to its Irish business. MJ Hudson’s Luxembourg, Guernsey and Jersey services businesses were valued at 4 million pounds each.
The deal, announced on 11 April, follows the suspension of MJ Hudson CFO Peter Connell and the resignation of its CEO Matthew Hudson in February and months of discussions over its audit statement, which saw auditor EY quit over “lost trust”, according to the Reuters news agency.
MJ Hudson was only listed on London’s AIM market in December 2019, when it had a market value of just below 100 million pounds.
Awaiting approvals
MJ Hudson shareholders will meet in Jersey on 3 May to approve the transactions. The sale of the business outsourcing business is subject to regulatory approval.
MJ Hudson said in December said its audit process was being delayed because issues were uncovered in the ongoing audit. Its shares have been suspended since then and the firm said it would not be able to publish its annual accounts and interim results.
MJ Hudson is specialised in servicing private markets and alternative investments. Its activities will be integrated into Apex’s European management company services delivered via its subsidiary FundRock in Luxembourg, the UK and Guernsey. Its Irish management company team will join Apex in Dublin.
Apex said that the addition of MJ Hudson’s Channel Islands Fiduciary and Fund Administration businesses, as well as its Investor Relations and Marketing Solutions business units will extend its “strategically important presence in the Channel Islands”, where the group currently employs over 550 local experts. Apex employs some 12,000 people worldwide in 38 countries. The acquisition will add some 80 billion euro in its assets under management.
Deeper footprint
Peter Hughes, founder and CEO of Apex Group, said the acquisition will “deepen our footprint” in Europe, in particular in management company and fund administration. The Apex statement did not refer to the problems at MJ Hudson.
“With the addition of MJ Hudson’s ManCo business, we will consolidate our position as one of the largest super ManCo providers in both the Luxembourg and Irish markets, offering scalable, pan-European solutions to clients,” Hughes said in a statement. “We look forward to welcoming new clients and 250 colleagues to Apex Group which offers a secure and supportive home for their future growth and success.”
The MJ Hudson acquisition follows Apex’s integrations of Sanne Group and Maitland, which both were completed at the beginning of this year. Rothschild & Co acted as financial advisor to Apex, with Kirkland & Ellis International LLP providing legal counsel. MJ Hudson was advised by Alvarez & Marsal.
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