European Wealth is to buy a book of business from Towry Asset Management for £1m.
The client bank represents a total of £120m in assets under advice at 31 March and European Wealth expects to generate profits of approximately £200,000 from the business.
The clients are based in South Africa and the UK and will be managed from European Wealth’s London office.
European Wealth says the deal broadens its range of corporate and private clients and it plans to build its international reach through the deal.
European Wealth will pay the £1m purchase price in three lots: £150,000 is due six months after the completion of the deal, a further £400,000 is due 12 months after completion, and a third instalment of £450,000 maximum will be paid 18 months after the deal has completed.
European Wealth will also pay Towry £200,000 for a loan owed to it by a consultant who is transferring to European Wealth. The loan will be offset against any bonus paid to the consultant. If the bonus is less than 200,000 then the remaining amount will be waived.
European Wealth group chief executive John Morton says: “This acquisition further strengthens the group’s ability to offer integrated investment management and financial planning services across the UK and internationally.
“The addition of this book of business will be enhanced by our ability to offer direct international equity investment to our clients.”