Merchant Securities has acquired wealth management firm GT Independent Financial Advisers Limited for £2m.
The deal consists of £1m in cash, of which £750,000 was paid on completion, with a further £250,000 payable on 9 February 2012, together with the issue of 4,347,826 new Merchant Securities ordinary shares.
A further consideration of up to £1m could be paid, depending on performance.
The acquisition doubles Merchant's assets under advisory and discretionary management to approximately £485m and the deal has received the approval of the FSA.
GT has approximately 3,300 private clients, with approximately £280m of assets under influence, and generated revenues of £1.25m and a profit before taxation of £280,000 in the year up to 31 May 2010.
The firm's managing director and former major shareholder, Tim Wall, will remain with the company, although it will change its name to Merchant Securities Wealth Management Limited.
Patrick Claridge, chief executive of Merchant Securities, says: "The deal more than doubles Merchant Securities' assets under advisory and discretionary management, to £485m, and represents exciting progress in our ambition to grow our presence significantly in the wealth management sector.
"We see considerable potential for the opportunity to bring additional products and services to GT's substantial client base.
"We very much look forward to working with the GT team and are very optimistic about the growth opportunities ahead for Merchant Securities Wealth Management."
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