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On Monday, professional services provider JTC (LSE:JTC) announced the acquisition of Citi Trust, the global fiduciary and trust administration services business, from Citigroup for $80 million.
Citi Trust offers a comprehensive range of fiduciary solutions and operates from seven major trust jurisdictions worldwide, including New York and Switzerland. The business manages assets exceeding $70 billion.
JTC described the acquisition as highly complementary to its existing operations and emphasized that it reinforces the company's position as a leading independent provider of global trust services.
The acquisition is projected to contribute mid-single digit earnings per share (EPS) growth in 2025 and high single digit EPS growth in 2026, the first full year following the acquisition.
JTC’s chief executive, Nigel Le Quesne, expressed enthusiasm about the acquisition, stating, “Citi Trust is one of the most established and well-respected providers of trust services globally. We are delighted to be chosen as the future custodian for its employees and clients. This acquisition is a transformative step for the group, expanding our presence in key growth markets such as the US, Europe, and Asia, and enhancing our revenue base with stable, annuity-driven income.”
At 0940 BST, JTC’s shares rose by 1.8% to 1,112p. Berenberg, which has a ‘buy’ rating on JTC shares, increased its price target to 1,400p from 1,300p. The firm highlighted that the acquisition strengthens JTC’s established trust platform, particularly in the US, where JTC has previously acquired New York Private Trust Company, South Dakota Trust Company, and First Republic Trust Company.
Berenberg noted that the deal brings compelling financial terms with clear commercial and cost synergies expected over the coming years. The firm has adjusted its EPS forecasts upwards by approximately 3% for FY25 and 10% for FY26. The price target was revised from 1,300p to 1,400p, reflecting a reasonable FY26 price-to-earnings ratio of 22x and the high quality of the acquisition.
