Wealth management business Quilter and Co. is to merge with discretionary investment firm Cheviot Asset Management to form a new firm, Quilter Cheviot.
The transaction, funded by Quilter's European private equity firm owner, Bridgepoint, is subject to regulatory approval but likely to complete at the end of the year.
Terms of the deal were not disclosed.
The combined business will have total assets under management of more than £12bn (Quilter's £8.2bn and Cheviot's £4.1bn), most of which are discretionary portfolios run on behalf of private clients, charities and trusts, pension funds, corporate bodies and life companies.
Quilter has 385 staff based in 13 locations in the UK, Jersey and Ireland. Cheviot has 139 partners and other staff in offices in London and Liverpool.
The combined group will be run by CEO Martin Baines, Quilter's current chief executive.
Cheviot cheif executive Michael Kerr-Dineen will join the holdings board of Quilter Cheviot and act as a senior adviser to the firm.
Chief executive officer of Quilter Martin Baines, said: "We have made no secret of our intention to join forces with complementary businesses to accelerate our growth and there is a really strong fit between the two firms."
Chief executive at Cheviot Michael Kerr-Dineen said: "This transaction provides us with far greater scale and geographic reach and will enable us to enhance our client services and capabilities still further."
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