James Hay and Saunderson House parent company IFG Group has sold its IFA arm to Ascot Lloyd in a deal worth up to £9.1m.
The acquisition includes an initial payment of £3.5m, with an additional £5.6m deferred consideration over the next two years based on future revenues.
The move, subject to regulatory approval, will see IFG Financial Services, John Siddalls and Berkeley Jacobs merge with Ascot Lloyd, which has offices in the South-east, the Midlands and Wales. The three businesses employ a total of 40 advisers.
IFG Group retains around 50 advisers that make up London-based Saunderson House.
IFG Group said in a statement: “This is the final step in the rationalisation of our non-core UK activities and facilitates an increased focus on continued growth and development of our core UK businesses, Saunderson House and James Hay Partnership.”
Jacksons Wealth Management managing director Pete Matthew says: “The risks are too great for large firms like IFG to keep watch over a number of different adviser businesses so a sale makes sense.”
IFG Group posted pre-tax profits of £2.6m for the first half of 2013 despite making a £4.6m provision for working capital in its international division.