IFA consolidator Destini is buying the core infrastructure of stricken IFA and non-regulated network Lifeboat in a deal that will see outstanding pipeline commission paid in full.
Around 100 RIs will join Destini and between 300 and 400 full-time Lifeboat mortgage and protection brokers will move across to form the basis of Destini's multi-tie offering which will launch in September.
Destini was introduced to the deal by Bank of Scotland, which is also the banker for Lifeboat.
The deal – for an undisclosed fee – follows a week of on/off negotiations that have also seen Tenet, Lighthouse and Sesame looking at buying Lifeboat.
The core team of Lifeboat will be kept on board although it is not yet clear whether the firm's name will remain in the bigger group.
Destini says the deal will add around £10m in turnover to its operations, which it hopes to grow to £30m by the end of 2004 once other acquisitions in the pipeline are completed.
Destini has now acquired 18 firms in the last 20 months and it is still targeting firms with a turnover of over £500,000.
Managing director David Collett says: “While our focus remains on whole of market, we recognise that multi-tie is an excellent business opportunity which cannot be ignored in any sensible commercial portfolio in this sector.”
Lifeboat chief executive Bill Wynn says: “I am very excited by the acquisition as it will ensure the Lifeboat team remains intact and will enable us to grow our proposition even more rapidly.”
Bank of Scotland director Lee Baty says: “We are delighted with this strategy, which accelerates Destini's plans. We are sure the right outcome has been achieved for the Lifeboat team.”