Friends Provident has expanded its intermediary arm after acquiring the Sesame Group and Pantheon Financial.
The move will see the company expand its focus on retail and ultra high net worth advisory businesses, having never wholly owned an advisory firm previously.
Misys has sold Sesame to the insurer for £75m though further payments may be made at a later date.
Pantheon has been bought for an upfront fee of £16.8m with further potential payments again possible over the next three years.
Simon Clamp, Friends Provident managing director of marketing and UK distribution, says the acquisitions are the latest moves in a six-year mission to invest in the distribution market.
He says the firm took minority stakes in firms at the beginning of the century before enlarging those stakes following depolarisation in 2003.
Today’s announcement involves 100% purchases of both firms and is testament to the company’s commitment to the market.
Clamp says the firm was aware of Misys’ attempts to offload Sesame, and of Sesame’s recent £330,000 fine by the FSA for shortcomings in treating customers fairly.
He also says both Sesame and Pantheon will continue to operate independently retaining their current brands.
Ben Gunn, a director of Friends Provident, said: “We are delighted with the opportunity to acquire these high quality, profitable brands and their talented management teams.
“Friends Provident is committed to maintaining and supporting a healthy intermediated sector which is our primary access to market.”
Patrick Gale, chief executive of Sesame, adds: “As a major financial services company, Friends Provident is a logical and natural owner to provide the support for us to drive our future aspirations.”
James Kaberry, chief executive of Pantheon Financial, says: “This is a major step forward for our company and the next phase of growth for the business, its clients and its people.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Scott Sinclair on 020 7034 2636 or email [email protected]IFAonline
According to Cicero report
Adds 24 staff, three offices and £275m AUA
Launches Junior ISA and retirement accounts
Schroders tops 2019 list
24 companies wound up