Iimia Investment Group is planning to merge with fund of funds specialist MitonOptimal in an £18.6m deal.
The merger, subject to a shareholder vote on October 9, will see the creation of iimia MitonOptimal.
Iimia will acquire at least 95 per cent of MitonOptimal’s share capital, which it will fund through the issuance of new shares and £1.9m in cash. The combined group will have £1.2bn in funds under management and advice.
Iimia is also undergoing a board reshuffle following the retirement of Sir Geoffrey Holland as a non-executive director and William Long moving from executive to non-executive chairman.
MitonOptimal will be subject to lock-in terms and joint managing directors Martin Gray and Scott Campbell will join the Iimia board on completion of the deal.
Iimia acquired South-west advisory firm JK Miln and Company last month.
Iimia chief executive Mike Phillips says: “The merger will increase significantly our multi-asset funds under management, strengthen our fund management resource, and extend the group’s distribution capability.
“This should position the group to benefit from significant developments in the UK pension fund market as well as extending our reach to overseas markets.”