Dutch Intertrust buys U.S.-based Viteos for $330 million

(Reuters) - Intertrust has acquired U.S.-based Viteos for $330 million (£263.3 million), the Dutch business administration company said on Tuesday, in a deal that will help strengthen its foothold in the United States and increase exposure to funds.

“This is a significant leap forward for Intertrust which will accelerate our strategy in every way,” Stephanie Miller, Intertrust’s chief executive said in a statement.

The purchase from PPC Enterprises LLC, FiveW Capital LLC and Viteos management was funded through debt and cash on balance sheet with $11 million re-invested by Viteos’ management and key employees in Intertrust shares.

Interserve shares rose around 5% in early trading.

The deal completed on June 17 is expected to deliver mid-single-digit EPS accretion in the first full year of ownership and double-digit EPS accretion by 2021, including phased synergies.

The company said that the synergies will mainly come from offshoring selected support functions for client-facing teams, back office and IT support.

Intertrust focuses on compliance, business ethics and transparency, helping clients to deal with legal, administrative and regulatory duties in international business.

It expects to deliver approximately 90% of the deal synergies by 2021 with about 20% coming through by next year. The one-off costs over the period to deliver the synergies are estimated at about $30 million.

Following the acquisition, Intertrust raised its medium-term guidance to reflect enhanced revenue growth and cost synergies, and now targets underlying revenue growth of 4-6% year-on-year and adjusted profit margin (EBITA) of at least 40% for 2021.

Viteos delivered revenues of $52 million for the year ended in March 2019, 94% in the U.S.

Reporting by Pawel Goraj, Editing by Sherry Jacob-Phillips/Keith Weir