Life insurer Aviva has brokered a deal to buy independent financial advice firm Succession Wealth to expand its presence in the UK wealth market.
The deal is valued at £385m. It is expected to close in the second half of 2022, subject to regulatory approvals.
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Succession Wealth has around 200 planners serving approximately 19,000 clients throughout the UK with £9.5bn in assets.
On a pro forma basis, the estimated 2022 EBITDA for Succession Wealth is expected to be approximately £24m.
This includes the benefit of the four announced acquisitions by the firm, which closed 60 acquisitions to date.
Aviva said the acquisition would enable it to provide advice to its approximately four million workplace pension customers.
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By GlobalDataThe firm is said to be the UK’s largest pension provider with £96bn in assets. It also caters to approximately two million pensions & savings customers with £139bn of assets.
Aviva Group CEO Amanda Blanc said: “The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva’s ability to offer high quality financial advice to millions of our customers.”
Succession Wealth will continue to operate as a separately regulated, independent, financial advice firm and will continue to use the Succession Wealth brand.
It will continue to be run by current CEO James Stevenson.
Aviva said it will leverage its existing investment management capabilities and adviser platform to provide a suite of solutions to support Succession Wealth planners in serving their current clients.
Stevenson said: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser.
“The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth’s holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting.”
Last year, Aviva bought UK-based low cost robo-adviser Wealthify.
