Merchant Securities has acquired wealth management firm GT Independent Financial Advisers Limited for an initial consideration of £2m, payable in cash and shares.
The acquisition more than doubles the group’s assets under advisory and discretionary management, which increases from £205m to £485m.
GT has a total client base of 3,300 private clients and £280m of assets under influence. For the year ended May 31, 2010, GT made a profit of £280,000.
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.
GT will change its name to Merchant Securities Wealth Management as soon as practicable. Managing director Tim Wall will stay with the company.
Merchant Securities paid £1m in cash for the firm, of which £750,000 was paid on completion.
A further £250,000 will be payable on February 9, 2012, together with 4,347,826 of new Merchant Securities ord- inary shares.
A further £1m may be paid if GT achieves performance related targets.
Merchant Securities chief executive Patrick Claridge says: “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.”