Wealth manager Mattioli Woods has announced the acquisition of 49% of the issued share capital of Amati Global Investors for a total consideration of £3.33m.
Mattioli Woods will acquire the company from Amati Global Partners and has also entered into an option agreement, which entitles it to acquire the company's remaining 51% in the two years commencing 6 February 2019 for a mixture of cash and ordinary shares.
If Mattioli Woods does not exercise this, then Amati is entitled to buy the former's stake back for the original consideration paid, although the sale of consideration shares will be restricted in the interim.
Amati was formed in 2010 by Paul Jourdan and Douglas Lawson following the MBO of Noble Fund Managers, and focuses on small and mid-sized companies across its £120m fund range, which includes the Amati UK Smaller Companies fund, two AIM Venture Capital Trusts - Amati VCT and Amati VCT 2 - and an AIM IHT portfolio service.
In its interim results out today Mattioli said acquisitions would continue to be a core part of its growth strategy going forward.
Last September the firm acquired pension administration and trustee services provider MC Trustees for £2.2m.
Chief executive Ian Mattioli said: "Our investment in Amati represents an exciting extension to our existing asset management business and is another important step forward for Mattioli Woods as we continue to expand our operations."
"Amati is a great fit culturally and strategically. I believe this investment will significantly enhance the group's fund management expertise."
Jourdan added: "As AIM investors we have known and admired Mattioli Woods for many years. As this transaction has evolved over the past year we have realised not only that our businesses are highly complementary, but that we share similar values and business culture.
"We are very much looking forward to working closely with them, and believe that as a result we will be able to take our specialist investment products to a much wider audience."
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Previously at Old Mutual Wealth
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