European Wealth Group (EWG), a UK-based wealth management firm, has purchased Surrey-based IFA Compass Financial Benefits, which has £31 million of funds under influence.
Under the deal, Compass will relocate to EWG’s head office in London.
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Following the deal, Compass principals John and Michael Robinson will be named as directors of EWG financial planning arm European Financial Planning.
The deal comprises an initial consideration of £539,150 payable half in cash and half paid in shares.
The remainder of any consideration due will be similarly be satisfied half in cash and half in new ordinary shares depending on business performance.
European Wealth said that it has raised approximately £674,000 via a placing of 749,303 new ordinary shares at 90p apiece. The proceeds of the placing will be used to cover the initial cash consideration and for the general working capital purposes of the group.
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By GlobalDataEWG will acquire Compass for a maximum of three times recurring income.
John Morton, executive chairman of European Wealth, said: "Whilst small, it will not only strengthen our presence in the group personal pension scheme market, where we see significant opportunities domestically, but also allow us potentially to leverage our investment management services to Compass’s clients.
"We also see significant scope for improving Compass’s operating costs whilst at the same time continuing to grow our overall funds under management and influence," he added.
