India-based IIFL Wealth Management has announced plans to acquire 100% share capital of a domestic investment solutions firm Wealth Advisors India for a total consideration of Rs2.35bn ($31.97m).
Founded in 2004, Wealth Advisors is a wealth management firm with about Rs110bn ($1.49bn) in Asset Under Advice and more than 1,275 clients.
The acquisition is expected to boost IIFL Wealth’s footprint as wealth advisors in south India, gain new client segments and enable steady annuity-based revenue.
In addition, the deal will add Wealth Advisors’ management and sales team, a technology platform and an operation team to IIFL Wealth portfolio.
IIFL Wealth Management managing director and CEO Karan Bhagat said: “Besides a formidable team, Wealth Advisors has a couple of commonalities with us which include a strong alignment of culture with a highly client-centric approach.
“This deal brings us some top-quality talent by way of sales and non-sales teams and our combined effort will further strengthen our reach and offerings for the high net worth clients and ultra-high net worth clients.”
Wealth Advisors anticipates that the transaction, which is subject to regulatory approvals, will bolster its client relationships and offer access to the IIFL Wealth platform.
Wealth Advisors co-founder, director and CEO Pramod Kumar said: “Their plethora of offerings in the wealth management space including asset management, trust and estate advisory, tax planning, corporate advisory, credit and leverage offerings is unmatched in the industry.