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Dublin-based IFG has agreed to buy Santander’s SIPP and wrap arm, James Hay, in a £35m deal.
The James Hay brand will now be adopted by the combined business, due to being widely recognised.
As of December 2008, James Hay had £8.9bn of SIPP assets from approximately 33,400 clients, and about £0.7bn from 2,800 wrap clients.
IFG plans to raise €50.7m through a placing of an open offer to finance the deal.
IFG's chief executive, Mark Bourke, says: "This catapults IFG into the position of number one SIPP provider in the UK. IFG will build on James Hay's brand strength and market position. James Hays' revenue is stable and recurring. The SIPP business margins are attractive and the market is growing."
IFG will hold an Extraordinary General Meeting (EGM) to approve the deal on 4 January 2010.
Comments
Low value Wrap
£0.7 billion of assets from 28,000 Wrap clients.......not exactly HNW clients!
Posted by: anno
Bye bye Wrap
That will be the final nail in the coffin for the James Hay Wrap then.....
Posted by: Andrew Whiteley
Who are IFG?
This is what people will be asking. A dublin based non-entity. People were happy with teh Santander / Abbey / James hay facility as this gave some financial stability to their investments within their SIPPs. Now just before Christmas, people will queuing to jump ship away from 'IFG' owned James Hay. Thanks for the warning Sanatander!!
Posted by: Huw
Mixed feelings
James Hay will be glad to see the back of Santander - having picked over the company over the last few years and failed to see through the long overdue InfoComp overhaul of the Sipp admin & Wrap platform, this may be a breath of fresh air. However, the question will be can IFG turn around and invest what is needed to get the company back on its feet - many of the key staff have left demoralised over the last few years floundering. Saving grace is that IFG have a good SIPP base and understanding (contrary to Santader), but are their pockets deep enough?
Posted by: OJ
Who knows
Ultimately who knows what is in store for the employees of James Hay, but the customer service, from feedback given to me, has been faultering over the last few years and I feel this will be the push IFA's and Clients need to go elsewhere. What with 0% interest in the cash account and a horrible instruction form, to name but a few areas for improvement, it doesnt look good, I only hope IFG improve on things otherwise it may not be a Happy New Year.
Posted by: Anon
Alternative Providers?
Clearly much of what made James Hay attractive is now in doubt. Who now are the viable alternatives with strong financial backing from parent groups? If interest rates stay low throughout 2010, the providers with a reliance on interest earnings will need strong financial backing to carry them through some tough times ahead.
Posted by: Anon
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Staff Implications?
Does anyone know what IFG intentions are regarding staff retention or anything like that?
Posted by: TM