The provider of corporate, fund administration, reporting and fiduciary services aims to boost its alternative asset capabilities with the purchase.

London-listed Sanne Group has agreed to acquire IDS Fund Services, a South Africa-based provider of outsourced investment administration services to the asset management industry.

The transaction, expected to complete within the next three months, will cost up to £13.6 million ($19.2 million), depending on the firm's financial performance for the year to the end of February 2016. IDS, which was established in 2002 and is based in Cape Town, with operations in Malta, administers structures and funds with over £3.6 billion in assets. Its services include fund accounting, investor services, and transaction and cash management.

“The acquisition of IDS is consistent with Sanne’s strategy of expanding the group’s capabilities and product offering, and delivering greater jurisdictional diversification. IDS’s track record as a leading provider of hedge fund administration services complements Sanne’s existing alternative asset specialisms in private equity, real estate and debt,” said Dean Godwin, chief executive of Sanne Group.

Sanne administers structures and funds with over €100 billion ($111 billion) in assets on behalf of alternative asset managers, financial institutions, family offices and corporates. The group currently has a presence in Dubai, Dublin, Guernsey, Hong Kong, Jersey, London, Luxembourg, Shanghai and Singapore.