Merchant Securities has acquired wealth management firm GT Independent Financial Advisers Limited for an initial consideration of £2m, payable in cash and shares.
Merchant Securities paid £1m in cash, of which £750,000 was paid on completion. A further £250,000 will be paid on February 9, 2012, together with 4,347,826 of new Merchant Securities ordinary shares.
A further £1m may be paid if GT achieves performance related targets.
The acquisition more than doubles the Group’s assets under advisory and discretionary management, which have risen from £205m to £485m.
GT has a client base of 3,300 private clients and £280m of assets under influence.
Merchant Securities says it sees “strong cross-selling opportunities”, including the potential to offer its own wealth management products and services to GT’s client base.
For the year ended May 31, 2010, GT reported pre-tax profits of £280,000.
GT will change its name to Merchant Securities Wealth Management Limited “as soon as practicable”. Managing director Tim Wall will remain with the company.
Merchant Securities chief executive Patrick Claridge says: “I am delighted to announce the acquisition of GT Independent Financial Advisers. The deal more than doubles Merchant Securities’ assets under advisory and discretionary management to £485m and represents exciting progress in our ambition to grow our presence significantly in the wealth management sector.”