Wealth management firm Mattioli Woods has acquired pension administration company MC Trustees in a deal worth up to £2.2m.
MC Trustees has over 1,500 Sipp and SSAS clients with over £400m in assets under administration.
It has 26 staff and is based in the West Midlands. The management team will be kept on following the acquisition.
MC Trustees, which also offers trustee services, made a pre-tax profit of £400,000 last year.
The deal is made up of an initial £1.2m payment, with £950,000 in cash plus the issue of new ordinary shares valued at £250,000.
A further £1m cash sum will be payable after two years, based on growth targets being met.
Mattioli Woods has also agreed a separate deal to acquire MC Malta, which runs qualifying recognised overseas pension schemes, for up to £600,000.
Mattioli Woods chief executive Ian Mattioli says: “This acquisition is another important step forward for Mattioli Woods, as we continue to expand our operations. MC Trustees is a great fit culturally and strategically, serving a similar client base to our existing business, while complementing our current operations in the East Midlands.
“The MC Trustees team has a proven ability to win high quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods’ services. I believe this will strengthen our position in a market that is continuing to consolidate.”
MC Trustees managing director Martin Cadman says: “We are excited to become part of the Mattioli Woods group and believe this transaction benefits our clients, employees and partners.”
Separately, Mattioli Woods has announced a pre-tax profit of £6.3m for the year to 31 May, up 19 per cent from the £5.3m profit posted last year.