Helm Godfrey has bought Truestone Employee Benefits from Truestone Asset Management in a deal worth up to £3.2m.
Truestone will get £1.9m in cash, £200,000worth of shares and an additional £1.1m subject to performance of the firm over the next three years.
Head of employee benefits John Deacon will continue in his role under the Helm Godfrey banner.
Deacon will join the Helm Godfrey board as a director and will report to the company’s managing director Graham Cross.
Cross says: “The acquisition is a major development for Helm Godfrey and one which will allow us to compete in an area of the market we believe is set for considerable growth over the coming years.”
Deacon says: “The combined business allows us to provide a truly holistic service to our clients and their employees, confirming the absolute necessity for advice in the workplace.”
Truestone says that it will continue to invest in its wealth management and investment proposition and the firm intends to make a number of acquisitions over the next 12 months.
Brunning Newman Hough-ton director David Brunning says: “Employee benefits is a very challenging area to be in because of the introduction of Nest. I think it is an area that a lot of people are looking to get out of.”