Consolidator AFH Financial Group has acquired Gloucestershire-based IFA Independent Financial Services for a maximum consideration of £4.1m.
Under the deal, AFH will pay the maximum consideration depending on the performance of IFS over the next 30 months.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Besides, a further £500,000 is expected to be incurred by AFH in restructuring and integration costs in the current financial year.
The consideration of the acquisition will be met through a combination of cash and issue of new ordinary shares in AFH over the 30 month earn out period.
Deferred consideration of up to £3.65m will be payable, out of which 50% will be in cash and the rest in consideration Shares.
AFH Chief Executive Alan Hudson said: "Today’s acquisition signifies another key milestone as both our largest to date and our first of a national firm, taking our total estimated FUM to £1.7 billion.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Independent Financial Services represents a significant paper-based transaction with protection for existing investors against excessive dilution and provides excellent geographical synergy to the Company’s current advisers We look forward to welcoming all new joiners as we head into another progressive period."
This acquisition marks AFH’s tenth one since its June 2014 AIM listing which took its total FUM to nearly £1.7bn.
