Retirement specialist MGM Advantage has acquired equity release firm Stonehaven.
MGM says Stonehaven will retain its brand and continue to focus on the lifetime mortgage market.
The acquisition is subject to regulatory approval, with the deal due to be completed in spring 2014.
MGM Advantage chief executive Chris Evans says: “The acquisition of Stonehaven provides a strong platform for us to develop and grow the retirement market.
“By sharing expertise and ideas across the group, we can leverage opportunities and help Stonehaven grow sales and become a significant provider of equity release.”
Stonehaven chairman Jayne Almond adds: “We have always enjoyed a strong relationship with MGM Advantage, sharing the same long-term ambitions and company values. This deal secures long-term funding which will allow us to develop more rapidly.
“Joining forces with the group at this exciting time allows us to fully unlock the potential in the business, securing the capital to help us provide solutions to meet consumer needs.”
Key Retirement Solutions director Dean Mirfin says: “Having this surety of funding will allow Stonehaven to plan much further ahead in terms of product development. This is a really positive deal for the equity release market.”