The Acquisition is subject to regulatory approval by the Malta Financial Services Authority, a process that generally takes a few months. Harbour is a licensed retirement scheme administrator based in Malta, incorporating four registered pension schemes with some 1,600 Members and audited revenues in the year to 31 December 2016 of £1.1 million.
The Board views the acquisition as a straightforward “bolt-on” to STM’s Malta business, complementing the existing circa 7,500 QROPS members and delivering recurring annual revenues in excess of £0.8 million per annum. The complete integration of the Harbour business is expected to take in the region of six months, after which the Board expects to deliver cost synergies and economies of scale of some £0.4 million on an annualised basis. The Board believes the acquisition will be moderately earnings enhancing in the first full financial year of ownership with annualised profit contribution of £0.4 million thereafter.
The terms of the Acquisition are confidential for commercial reasons but it will be funded from existing cash reserves.
“We are delighted to announce the acquisition of Harbour which will further build our book of business in Malta and allow for additional profit uplift from this jurisdiction.”
“Harbour is a good solid business and the acquisition by STM is a win-win for all parties, giving a sensible exit route for the existing shareholders whilst at the same time ensuring that their existing QROPS members are well looked after going forward.”
“As predicted, the QROPS landscape in Malta and Gibraltar was always going to change significantly post March 2017 UK budget announcement.”
“The STM executive continues to seek other consolidation opportunities in the QROPS market.”
“Harbour was always a five-year plan for the team and we are rapidly approaching the end of this period. As entrepreneurs, this move allows us to focus on our other investments within our portfolio.”
“It has been a great team effort and I wish to thank all those who contributed to Harbour over the years, and I have very much enjoyed working in the dynamic financial services hub of Malta.”
“I am delighted that we were able to reach an agreement with STM to acquire Harbour as they are one of the largest independent global pension administrators.”
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.