Moneygate has revealed it spent £100k on due diligence into the failed acquisition of Clarkson Hill, but says it will now take on advisers wishing to join the firm.
Following speculation the IFA consolidator was in the frame to acquire Clarkson Hill Group, CEO Lee Hartley says the deal fell through because it was unable to get bulk transfer approval.
"I can confirm we did not acquire the business and assets of CHG despite being involved in the process for the past three months," he says in a statement.
"Our offer could not succeed without bulk transfer approval. We hoped to be in a position to achieve this within a matter of days, but we didn't have all of the elements together when final offers were requested."
But Hartley says Moneygate's attempt to snap up Clarkson Hill is not a wasted venture.
"To date we have spent around £100k on this project in relation to due diligence and advisory costs. I believe this was money well spent as we are completely satisfied that we have not acquired the business on disjointed terms," he says.
He adds Moneygate is now hoping some of the Clarkson Hill advisers will join the firm.
"We are currently putting all of the conditions and measures that formed our bulk transfer application into an individual process for advisers that choose to join us - we hope that by doing this we can get advisers into a trading position quickly.
"Internally we have also agreed that the full financial commitment that previously stood behind our offer will be put on the table for advisers to replace lost income - that's really where our investment needs to go."
The move comes as the board of Clarkson Hill considers selling the business. Moneygate, along with Merchant Capital, have been in the frame to carry out a bulk transfer of the firm's advisers.
Last week, AIM-listed national IFA Clarkson Hill appointed Bridge Business Recovery as administrator. This followed an announcement on 6 December it had been unable to undertake regulatory activities as a result of a variation in its permissions by the FSA.
Moneygate Group recently revealed it has secured new funding as it attempts to buy out the shareholding of its investment partners, MGT Capital Investments, which own 49% of the consolidator.
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