IFG GROUP has acquired Excel-Serve Management Limited, a company based in Cyprus with offices in Nicosia and Limassol, in a deal that could be worth up to €25 million.

The acquisition was made through its subsidiary IFG Trust (Cyprus) Limited and will expand its trustee business in Cyprus.

The initial consideration is €10.7 million and was paid in cash on completion of the deal. Deferred consideration of €10.7 million has been placed in escrow, and will be released in equal sums after one and two years but may be subject to reclaim if the company fails to achieve certain agreed turnover thresholds for the two years after completion of the deal or if any client or warranty claims arise.

Excel-Serve Management is a specialist corporate services provider offering specialist trust and corporate structures and company administration services to a wide range of personal and corporate clients worldwide.

The company, which commenced trading in 2004 when it acquired the corporate clients of Deloitte Touche in Nicosia, will be integrated into IFG Cyprus’s activities and will operate under IFG’s International Trustee and Corporate Services Division.

Excel-Serve Management employs 42 people and manages approximately 800 legal entities.

In 2007, it had turnover of €6 million, pre-tax profits of €3.7 million and gross assets of €5 million. Net assets being acquired are estimated at €3.5 million.

“This acquisition is exactly in line with our strategy and highly significant for a number of reasons,” said Mark Bourke, chief executive of IFG. It fulfils our stated ambition of building our Cyprus base. With it we continue to build the assets under our control.”