MJ Hudson has sold its two remaining business operations to Apex Group for £40m, as the embattled firm weighs its future.
Its data and analytics and business outsourcing arms will form part of Apex Group's already established offering, while MJ Hudson's management company services in Ireland and Luxembourg are set to add €80bn in assets under management to Apex Group's existing services.
The vast majority of the proceeds from the deal will go towards repaying £33.7m owed to Santander UK, with the firm stating that it was "highly unlikely" shareholders would receive payouts once costs were settled.
The group has been plagued by scandal after its CEO Matthew Hudson stepped down earlier this year due to a loss of "trust and confidence" from the firm's former auditor Ernst & Young.
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In December, the firm also suspended its chief financial officer Peter Connell, who had already stepped down as a director in October. Two non-executive directors also resigned from the board.
The firm's shares have been suspended from trading since December.
This acquisitions follows MJ Hudson's sale of its UK fund management business last month to special purpose acquisition vehicle Khepri.
After the sale to Apex Group is completed, the firm will become a cash shell without a trading business, MJ Hudson said in a statement today (11 April).
It also intends to give notice to the Solicitors Regulation Authority for the proposed closure of its legal business, but it has not made any long-term decisions about the future of the company, the firm added.
This is the latest of a series of acquisitions by Apex Group, which has also recently purchased Sanne Group and Maitland.
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Peter Hughes, founder and CEO of Apex Group, said: "With the addition of MJ Hudson's ManCo business, we will consolidate our position as one of the largest super ManCo providers in both the Luxembourg and Irish markets, offering scalable, pan-European solutions to clients.
"We look forward to welcoming new clients and 250 colleagues to Apex Group which offers a secure and supportive home for their future growth and success."
Geoff Miller, chair of MJ Hudson, added: "With significant global reach and leading technology, Apex Group offers the right platform for our teams to continue supporting asset managers with the right resources, advice and technology to meet their evolving outsourced service requirements.
"We are excited by the opportunities this transaction offers for both MJ Hudson employees and our clients and look forward to beginning a new chapter as part of Apex Group."
