AFH Financial, a UK-based financial planning led wealth management firm, has acquired Devon-based advice firm Davisons Financial Management (DFM) for £2.9m.
The initial consideration of the deal will comprise a cash payment of £1.07m with a further deferred consideration of up to £1.68m will be payable over the next 24 months.
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Of the deferred amount, a maximum of £945,000 will be paid in cash, AFH Financial said in a statement.
The purchase of Davisons will become the thirteenth acquisition by AFH since it has been listed on AIM in June 2014.
As part of the deal, advisers of DFM will join AFH.
Commenting on the deal, AFH CEO Alan Hudson said: "I am pleased to welcome current Managing Director of DFM, John Wright and his team to AFH and look forward to developing the existing relationship with DCA to drive the expansion of AFH in the South West region.
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By GlobalData"The structure of this deal, which enables the vendors to participate in any future uplift in revenue and profitability through the issue of the Consideration Shares and will be held for a minimum period of three years, reflects their belief that the sector has significant potential and that our business model is value enhancing."
