Old Mutual Wealth has exchanged contracts for a takeover of adviser network Caerus via its own network Intrinsic, the company has announced.
In a note to investors this morning the company said it had made an offer for Caerus, which was accepted unanimously by the board.
However, the proposed acquisition, which is expected to complete in Q2 this year, was subject to a number of conditions, including shareholder agreement and regulatory approval.
More than 300 advisers are authorised through Caerus and are responsible for more than £4bn of assets under advice.
According to a person close to the matter, Old Mutual offered just more than £30m for the company, which equated to about £6.35 per share.
An earlier deal with Sanlam UK, which later fell through, was believd to have valued the business at more than £40m, the source said.
The two firms are believed to have been in talks since last June, shortly after Sanlam, which had initially agreed to buy a 20% stake in Caerus, had pulled its offer.
Sanlam pulled out after former Ashcourt Rowan chief Jonathan Polin took over as UK chief executive of Sanlam Private Wealth in November 2015.
The acquisition of Caerus would increase Old Mutual Wealth's distribution footprint in the UK, which already includes Intrinsic and national advice firm Old Mutual Wealth Private Client Advisers, which was established in 2015.
Last March Old Mutual Wealth chief distribution officer Richard Freeman told PA the firm had ambitions to become consumers' national advice brand of choice and was exploring options as part of a project entitled "prosperity".
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