Nottingham-based high net worth IFA Arden Court Group is to be acquired by discretionary wealth manager AFH Financial for an initial consideration of £362,000.
Arden has total assets under administration of about £100m across some 2,500 clients and, in the financial year ended 31 May 2011, recorded gross profits of £418,000 on revenues of £1.01m.
The acquisition marks Bromsgrove-based AFH's seventh since its IPO last year and will take its total number of advisers to 80, once nine from Arden Court have moved across.
Nat Parmar, the current managing director of Arden, joins AFH as regional director for the north.
The initial consideration for the acquisition is £362,000, comprising £337,000 in cash from AFH's existing resources and £25,000 via the issue of 25,000 ordinary shares of 10p each.
A deferred cash consideration of £337,000 may also be payable in two years depending on Arden's performance.
AFH has also issued a total of £225,000 of loan notes to Arden, which will be convertible into ordinary shares 13 months after completion of the acquisition at a rate to be determined by, amongst other things, Arden's performance over that period.
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