Mattioli Woods has acquired TCF Global Independent Financial Services and its subsidiary, employee benefits and wealth management firm Kudos Independent Financial Services, for £8.69m.
Mattioli Woods will make an initial payment of £3.94m, comprising £2.75m in cash and 462,572 ordinary shares in Mattioli Woods, which are valued at £1.19m as of August 26. The remaining consideration of £4.75m is payable in cash in the three years following the deal’s completion, if certain revenue and profit targets are met.
TCF is the holding company of Aberdeen-based Kudos, an employee benefits and wealth management business founded in 1991. Kudos’ management team will be retained by Mattioli Woods following the acquisition.
In the year ending September 30, 2010, Kudos made a pre-tax profit of £534,817 on revenues of £4.2m.
In August 2010, Mattioli Woods acquired Lighthouse’s pension administration business, City Pensions/City Trustees, for £1.85m. In May that year, it also acquired pension administration and employee benefits businesses Cooper Parry Wealth Strategies for £1.175m.
Mattioli Woods chief executive Ian Mattioli says: “In addition to extending our geographic footprint, the acquisition gives us the ability to offer our core SIPP, property and investment products to Kudos’ clients and to offer enhanced employee benefits services to Mattioli Woods’ clients and the wider market.”