JTC Announces Acquisition of Citi Trust from Citigroup

2 min read | September 16, 2024 12:42 AM PDT | By Team Kalkine Media

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JTC Announces Acquisition of Citi Trust from Citigroup — Image source: Shutterstock

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JTC Plc, a financial sector stock, announced its proposal to acquire Citi Trust, the global fiduciary and trust administration services arm of Citigroup Inc., for a total consideration of $80 million. Citi Trust operates across seven global trust jurisdictions and offers a full range of fiduciary solutions with significant cross-border experience.

Citi Trust's assets under administration (AUA) exceed $70 billion, reflecting the scale and reach of its global operations. The acquisition is expected to enhance JTC's ability to provide diversified fiduciary services on a broader international scale.

Expected Financial Impact on JTC

JTC (OTC:JTCPF) expects the acquisition to result in mid-single-digit accretion to its earnings per share (EPS) in 2025, with high-single-digit EPS accretion projected in 2026, which will be the first full year following the acquisition. This reflects the company's confidence in integrating Citi Trust into its existing operations and leveraging the expanded client base and geographical presence.

Strategic Alignment and Growth

JTC has stated that the acquisition aligns with its strategic objectives to grow its global footprint and strengthen its service offerings in the fiduciary sector. Citi Trust’s extensive network of global clients and its cross-border expertise are anticipated to complement JTC’s existing operations, enhancing its capability to offer tailored fiduciary and trust solutions to a broader range of international clients.

This acquisition is another step in JTC's efforts to expand its global presence and strengthen its market position in the fiduciary and trust services sector. The company’s focus on scaling its operations globally aligns with its long-term strategy to deliver sustainable growth.

Next Steps for the Acquisition

The transaction is subject to regulatory approvals and customary closing conditions, which are expected to be completed in due course. Both companies will work towards a smooth transition to integrate Citi Trust into JTC’s existing framework, ensuring continued service for clients across the seven jurisdictions in which Citi Trust operates.

With this acquisition, JTC aims to further consolidate its position as a leading global provider of fiduciary and trust administration services.

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