PraxisIFM Group has received regulatory approval to complete the sale of its fund administration division to Sanne Group, in an all-cash deal totalling £54m.
The original announcement of the sale was made in July.
PraxisIFM said it will focus on developing its private wealth and corporate services divisions, which have been fundamental to the company since its formation in 1972.
The company plans to return a significant amount of the proceeds to shareholders and will use the balance initially to reduce bank borrowings, fund the expansion of the business and focus on technology.
Further details of the capital return will be announced over the coming weeks.
As part of the transaction, £5.5m of the total consideration will be held in escrow and is expected to be released in July 2022, subject to certain performance criteria.
Robert Fearis (pictured), Chief Executive Officer of PraxisIFM, commented: "Having completed this transaction, we can now concentrate our resources on our core offering, providing corporate clients, individuals and families across all our jurisdictions with a wide range of bespoke services."
Appleby acted as lead counsel to PraxisIFM on the sale, which completed on 3 December.