Pensions consultant and wealth manager Mattioli Woods has bought Thoroughbred Wealth Management (TWM) in a £6m deal.
Mattioli Woods also bought the firm's subsidiary, Atkinson Bolton Consulting (ABC), which specialises in employee benefits.
It said the deal was worth just under £6m, with an initial consideration of £3.24m - comprising £375,000 in cash about 900,000 new shares. A contingent deferred consideration of up to £2.75m is payable in cash over four years.
ABC has total funds under management and advice of about £420m.
ABC's management team will be retained by Mattioli Woods following the acquisition, which it said, is expected to be "earnings enhancing in the first full year of ownership".
In the year ended 31 December 2012, TWM generated a profit after tax and before shareholders' dividends of £0.61m on revenues of £2.88m.
At 31 December 2012, TWM's consolidated net assets were £1.77m (including net assets of ABC of £0.98m).
Mattioli Woods said the purchase would enhance its position in light of automatic enrolment and give it more scope to expand its self-invested personal pension and wealth management operations.
Chief executive Ian Mattioli said: "The acquisition of Atkinson Bolton is an excellent cultural and strategic fit, offering real synergies with the wider Mattioli Woods Group. This is another exciting step forward in our development as a broader wealth management business and offers us the ability to provide additional value-added services to clients of both firms."
Atkinson Bolton managing director James Bolton added: "We are proud of the business we have built over the last twelve years and excited about joining the Mattioli Woods Group.
"We look forward to continuing to develop Atkinson Bolton as an integral part of the Group for the benefit of clients, employees and shareholders. With the added benefits of scale, more locations and breadth of service, we can enhance delivery across each of our corporate employee benefit, wealth management and investment propositions."
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