Mattioli Woods, a UK-based provider of wealth management and pension consultancy services, has acquired the entire share capital of Thoroughbred Wealth Management (TWM) and its subsidiary Atkinson Bolton Consulting (ABC) in a deal worth £6 million.
TWM is the holding company of ABC, an employee benefits and wealth management business with total funds under management and advice of about £420 million.
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The total consideration consists of an initial consideration of GBP3.24 million (subject to adjustment for the value of net assets acquired), comprising GBP375, 000 in cash and 946,256 ordinary shares in Mattioli Woods.
A contingent deferred consideration of up to £2.75 million is payable in cash over four years.
Following the acquisition,ABC’s experienced management team will be retained by Mattioli Woods, which is expected to be earnings enhancing in the first full year of ownership.
The acquisition enhances Mattioli Woods existing employee benefits proposition at a time when the introduction of the National Employment Savings Trust (NEST) and auto-enrolment present clear opportunities.
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By GlobalDataIn addition, the acquisition will offer the enlarged group the opportunity to extend the provision of self-invested personal pensions and adds further wealth management expertise to Mattioli Woods’ existing operations.
As of 31 December 2012, TWM generated a profit after taxation and before shareholders’ dividends of GBP0.61 million on revenues of GBP2.88 million. Meantime, TWM’s consolidated net assets were GBP1.77 million (including net assets of ABC of GBP0.98 million).
Ian Mattioli, chief executive of Mattioli Woods, said: "The acquisition of Atkinson Bolton is an excellent cultural and strategic fit, offering real synergies with the wider Mattioli Woods Group. This is another exciting step forward in our development as a broader wealth management business and offers us the ability to provide additional value-added services to clients of both firms."
James Bolton, managing director of Atkinson Bolton, commented: "With the added benefits of scale, more locations and breadth of service, we can enhance delivery across each of our corporate employee benefit, wealth management and investment propositions."
