Brooks Macdonald Group, a UK-based wealth management firm, has entered into a put and call option agreement to acquire Levitas Investment Management Services for up to £24 million.
The agreement has been signed with shareholders of Levitas in respect to the sale and purchase of the entire issued share capital.
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The acquisition will allow Brooks Macdonald to expand its investment proposition while further enhancing its ability to meet a range of client attitudes to risk.
The deal will also complement the Group’s growth strategy by providing a profitable extension to BMAM’s existing successful investment approach and product proposition.
In order to complete the deal, the Group will incur costs of £150,000 in the year ending June 2014.
Through this acquisition, the Group expects Levitas to gain significant growth over the next five years and increase earnings in the next financial year.
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By GlobalDataCurrently, Levitas sponsors two funds for which Brooks Macdonald will serve as the investment adviser.
Following the deal, which is expected to close between July and August in 2014, directors and shareholders in Levitas including Craig Knight and Derek Miles are expected to remain in their roles.
Brooks added that Levitas service had the potential to gather £150 million by June 2014 and £250 million the year after.
Chris Macdonald, Brooks’s chief executive, said: "We already have the privilege of managing these funds and we believe that the potential for growth in the future is significant."
