Mattioli Woods and Kingswood Group have revealed their plans for merger, aiming to form a UK wealth and financial planning major, with assets exceeding £25bn ($33.6bn) under administration and advice.

The merger, pending regulatory approval, combines two firms in the advisory market, seeking to enhance client relationships, expand adviser capacity, and diversify investment and service offerings.

The new organisation will cater to more than 25,000 clients and employ over 200 financial advisers across more than 40 offices throughout the UK.

The merger is expected to improve capabilities in wealth planning, investment management, and pension and employee benefits services.

Mattioli Woods Group CEO and founder Ian Mattioli said: “Our stated long-term ambition is to become a national wealth management firm with £60bn in assets and up to 300 advisers.

“Combining with Kingswood is a transformational moment and sees us accelerate our journey to achieve these goals.”

The firms have stated that this merger aligns with their mutual goal of sustainable growth, focusing on adviser development, product innovation, and service quality.

Kingswood Group CEO Peter Coleman said: “The combined business will accelerate our journey towards achieving our vision of having the scale to deliver a best-in-class wealth management service to our clients.

“This is supported by our market-leading DFM and IBOSS brands. I am excited to combine with Mattioli Woods, who have a strong reputation of delivering broader services including group benefits and deep expertise in specialist pensions.”

In March this year, Kingswood’s private-equity partner, HSQ Investments, proposed acquiring the remaining shares in Kingswood for an estimated £43m ($57.9m).

Additionally, discussions were held regarding a potential merger between Kingswood’s UK and Ireland operations and another wealth management firm, which is part of the portfolio managed by Pollen Street, HSQ’s parent company.