AFH Financial Group has acquired Bridgend, Wales based IFA AG Financial Planning for £422,000.

The deal comprises an initial cash payment of £195,000 from AFH Financial’s existing resources, and a further cash consideration of up to a maximum of £227,000 depending on the performance of AG Financial in the 24 months following completion.

The acquisition marks AFH Financial’s 17th acquisition since listing on ISDX in June 2011 and the second since the retail distribution review (RDR) was implemented on 1 January 2013.

AG Financial manages approximately £28 million of funds under management for around 200 clients.

The IFA reported recurring revenues of approximately £ 140,000 in its most recently completed financial year.

Following the deal, Robert Donaldson, the vendor of AG Financial, will remain at AFH as an adviser.

Alan Hudson, chairman and chief executive of AFH, said: "I am pleased to welcome Robert and his clients to our growing advisory team. This transaction underlines our strategy of making synergistic acquisitions which enhance our existing offering."