The name of the new entity will be decided and announced in due course.

Europe-based Microgen Financial Systems and Touchstone Wealth Management, have merged, building a trend of consolidation in the trust and corporate services sector.

As part of the merger, Keith Hale is joining as executive chairman to run the combined group. Hale will work with both management teams on the combined strategy, oversee integration as well as drive business development. Hale used to be CEO of Multifonds, a software provider in the fund administration sector.

The name of the new entity will be decided and announced in due course, a statement from the organisations said.

“The trust and corporate services industry is both growing significantly and consolidating into an ever-reducing number of leading global service providers. These providers are now driven by demand for global coverage, but with increased regulatory oversight, changing fee models and cost pressure,” the firms said.

The enlarged company will have a combined workforce of over 150 people, with offices in Jersey, Guernsey, Cyprus, Singapore, Australia and the UK. Microgen and Touchstone will continue to operate as two separate divisions with investment and product development continuing in their core products, NavOne and 5Series.

Silverfleet Capital, the European private equity firm, is supporting the merger. It invested in Microgen in June 2019, when it was demerged from Aptitude Software, and continues to support the business during this merger. Touchstone Wealth Management will be carved out of the Touchstone Group PLC, which will become a minority shareholder in the new company.

Such transactions are fresh examples of consolidation in the trusts, fund administration and corporate advisory services space. Earlier this month ZEDRA Group, an international provider of trust, corporate and fund services, bought the Switzerland/Isle of Man-based LJ Fiduciary business from investment firm Alvarium.

Earlier in the summer this year, SMP Group of Companies, a global professional and financial services group based in the Isle of Man, bought Jersey-based Helm Trust Company, a trust and corporate services provider. A number of banks, such as Investec, ABN AMRO and Barclays have spun off trusts and associated businesses. ZEDRA bought the Barclays UK trusts business and completed that deal in April 2016. In December 2017, investor services firm SGG Group bought Jersey-based First Names Group from AnaCap Financial Services, the private equity organisation. Among other deals, in 2014, Butterfield Group, part of Bermuda-based Butterfield, completed its acquisition of Guernsey-based Legis Group, taking on its trusts and corporate services business.

Salamanca, the UK-based Investec Trust Group; ABN AMRO sold its trusts business a decade ago to Equity Trust. Rival Netherlands-based ING spun off its trusts business in 2007. In the Channel Islands, deals have included the investment by Close Brothers Private Equity in Jersey Trust Company and Kleinwort Benson’s acquisition of Close Brothers Offshore Group. In 2011, TMF and Equity Trust merged. Australia and New Zealand Banking Group has completed the sale of its ANZ Trustees business to Equity Trustees.