Towry has reached a deal to buy Ashcourt Rowan for £97m, the wealth management firm has announced.
Under the terms of the deal, Ashcourt Rowan shareholders will receive 270p per share, plus 5p in loan notes.
The Ashcourt Rowan directors intend to unanimously recommend its shareholders vote in favour of the deal.
Subject to regulatory approval, the acquisition is expected to go ahead in three months’ time.
Ashcourt Rowan provides wealth management and employee benefit consultancy services, and manages or has influence over £5bn in assets, of which £2.3bn is on a discretionary or managed basis. The firm has 340 staff and 16 offices in the UK.
Towry manages £6bn in assets and has 22,000 clients. It has around 800 employees from a national network of 20 offices.
Towry says that on completion of the deal, it will conduct a full review of the combined business to identify any cost efficiencies, including the overlap in office locations and business activity. It says this will lead to some redundancies.
Towry chairman Ron Sandler says: “The combination of the Towry and Ashcourt Rowan businesses will bring an exciting opportunity to create one of the largest companies in the UK private wealth management sector.
“Our highly complementary business models will deliver significant client benefits, providing access to a broader range of services and investment solutions.”
Ashcourt Rowan chairman Hugh Ward says: “We are pleased that our recent discussions with Towry have been concluded positively.
“The offer price of 275p per Ashcourt Rowan Share represents a fair price for the business, is a 4.7 times increase in the market capitalisation of the Ashcourt Rowan Group since 1 December 2011 and is testament to the dedication, passion and drive of all our staff.”