The deal is Towergate’s sixth to date with M2 Financial becoming the firms’ East Midlands regional business.
M2 managing director Mark Howard will remain with the firm as part of the deal.
Towergate Financial chairman Patrick Snowball says: “We are delighted to welcome Mark Howard and the team of M2 to Towergate Financial.
“Our strategy is to build a well capitalised regional advisory business operating under the strong Towergate brand. This is our first acquisition since our successful raising of £108 million, which we announced earlier this month and is our 6th acquisition this year.
“M2 is a very successful business with high quality clients and advisers. This acquisition is a vital part of our expansion plans in the Midlands and Mark will be working with us on further acquisitions in the region.
We continue to look for opportunities to work with high quality businesses across the UK”.
Howard says: “This is a very exciting new phase in our development. We have built our business on our commitment to offering a competitive and innovative proposition to clients and are confident that Towergate Financial is the ideal partner to support us with this next phase of development.”