Brooks Macdonald Asset Management has agreed to purchase the investment management activities of national law firm Clarke Willmott in a deal worth up to £6m.
The deal, subject to legal formalities and client communications, will see Brooks Macdonald pay the Taunton-based law firm £1.56m when the transaction is completed on 31 October.
Further consideration will be based on a maximum of 3.25% in total of the relevant discretionary funds under management, with the total being subject to a maximum of £6m.
These will be paid upon completion of the deal and in two tranches 12 and 24 months post-completion.
Clarke Willmott's in-house investment management team of eight staff, including five investment managers and three support staff, currently manage approximately £120m of discretionary client assets.
Although they will now be brought in under the Brooks Macdonald Asset Management brand, they will continue to be based in Taunton, creating a new regional office for the company.
Chris Macdonald, chief executive of parent company Brooks Macdonald Group, said: "Aside from the many synergies which include investment style, client care, transparency and private client focus, the group has for some time been considering opening a regional office in the South West."
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