The deal brings in a US-based firm with about 750 staff.

Intertrust, the Netherlands-listed provider of administrative services to corporate, fund, capital markets and private wealth clients, is boosting its presence in the US market by buying Viteos, which offers tech solutions to US funds. It is acquiring that business from PPC Enterprises, FiveW Capital (an affiliate of 22C Capital) and Viteos management.

The purchase price was $330 million, Euronext-listed Intertrust said.

With the deal, Intertrust acquires a business with about 715 staff, which most recently chalked up revenues of $52 million, of which 94 per cent came from the US. Revenues have risen at a compound annual growth rate of 22 per cent over the past two years, a statement from Intertrust today said. (Intertrust has about 2,500 employees.)

Viteos provides middle- and back-office administration for top tier hedge funds, private equity, real estate, private debt and other alternative asset managers.

Under the transaction's terms, Viteos’ co-founders, Shankar Iyer and Chitra Baskar (formerly CEO and COO, respectively), will join Intertrust's executive committee and, along with other prominent employees, have reinvested about 35 per cent of their after-tax proceeds in Intertrust shares.

The transaction is expected to deliver mid single-digit earnings-per-share accretion in the first full year of ownership (2020 and double-digit EPS accretion by 2021. The firm said it has identified $22 million of net run-rate annual cost "synergies", mainly coming from offshoring some selected support roles for teams that face clients, as well as in back-office and IT support areas. About 90 per cent of such synergies should be achieved by 2021.

"The acquisition of Viteos is an acceleration of our strategy to become a global leader in tech-enabled corporate and fund solutions, adding a high growth provider of leading-edge technology solutions with a top 10 position in US fund administration and over 80 top-tier clients," Intertrust said.

"Viteos’ world-class client base and technology solutions, developed by a team of 130 technology experts, significantly expand the market potential for Intertrust into higher growth adjacencies with attractive cross-selling and upselling opportunities," the firm continued.

Intertrust said the deal will boost its annual market value to more than €3.5 billion ($3.93 billion), leading to a total market potential of more than €10.0 billion, growing at 4-6 per cent per annum (up from €6.5 billion, growing at 3-5 per cent).  

The agreement also deepens Intertrust's technical savvy, it said, because Viteos has been digitising and automating fund administration with technologies including blockchain, and workflow automation.

The following parties have advised Intertrust on the transaction: Deutsche Bank acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel. Deutsche Bank provided committed debt financing in support of the transaction.