Gibraltar-based financial services provider STM Group has acquired Compagnie Fiduciaire Trustees, based in Jersey, for an initial £315,000 ($617,000).

The AIM-listed firm said it will pay an additional sum equal to the amount by which CFT's net assets, at 31 December 2007, exceed the regulatory minimum adjusted net liquid assets requirements.

CFT had a net profit of about £100,000 for the year end 2006, on revenues of £400,000.

CFT is incorporated in Jersey and became licensed by the Jersey Financial Services Commission as a professional trustee in August 2002. In March 2006, CFT's licence was extended to include company management. CFT has an established client base which, in December 2007, comprised 23 trusts.

STM Group raised £7.5 million on listing on AIM last March, which funded the purchase of Gibraltar-based Fidecs Group, which had been founded by STM chief executive Tim Revill.

STM subsequently acquired the Atlas Trust Company and Parliament Corporate Services, both also based on the Rock.

Mr Revill said: “This is our first acquisition within the Channel Islands. Whilst CFT itself is small scale, it immediately provides us with a CTSP licence and a bridgehead into a strategically important jurisdiction. STM Group has numerous existing client entities in Jersey which are currently receiving corporate and trustee services from third parties and these can now be transferred into our own operating subsidiary. In keeping with our acquisitive strategy we expect this transaction to contribute to shareholder value.”