They expect the deal will give them a combined turnover of £40m by January 2005, when the deal is scheduled to be completed, and a turnover of £60m by December 2005.
The company, called Thinc Destini, will have about 800 advisers and a total staff of around 1,000, with £2.5bn of funds under management and £4bn of annual lending.
It will offer the full spectrum of advice, from high-net-worth independent advice to single or multi-tie on mortgages and protection, with mobility across the combined businesses for career development.
Destini, which says it will continue to make acquisitions once the merger is completed, says the model will work bec-ause Thinc Destini owns distribution, as opposed to other firms which rent or franchise their distribution.
Destini Group managing director David Collett says: “The two new kids on the block have merged to form a truly sustainable model and we are doing it for the right commercial reasons, which are to enh-ance both shareholder value and our client offering. It is also a wake-up call to the sector, where conventional models are taken for granted. Change creates a window for new thinking and this deal will catapult Thinc Destini into the top five.”
Thinc chief operating officer Simon Chamberlain says: “The ending of polarisation offers a unique opportunity to create a truly multi-distribution channel. The merger brings together all disciplines from across the marketplace. Never before has there been a nat-ional business which plays to the strengths of both IFA and tied markets. This is the first all-embracing proposition. It will also increase service and cost-effectiveness to clients.”