WH Ireland has signed a conditional acquisition agreement to purchase the entire issued share capital of independent financial advisory and wealth management firm Harpsden Wealth Management for £7.8m.
The addition of Harpsden’s £250m in assets under management (AUM) and another £140m in assets under influence (AUI) would boost WH Ireland’s pro forma AUM by 14% to £2bn.
WH Ireland will initially pay £5.3m in cash for the potention takeover of Harpsden – a Henley-on-Thames-based firm set up in 2008.
It will pay the remainder in two contingent payments of £1.25m each over 24 months.
In order to finance the deal, WH Ireland raised £5.3m through a placing of 13.3 million shares at 40 pence a share.
The integration of the two businesses is anticipated to result in annual cost synergies of £600,000.
The deal closing is conditional on the completion of the placing and regulatory nod.
WH Ireland CEO Phillip Wale said: “The acquisition of Harpsden is in line with our stated strategy of growing the Wealth Management (“WM”) division through both organic and inorganic growth.
“The progress we have made in reorganising our business is evidenced by our return to profitability and we now have a robust operating platform from which to build both businesses. The Conditional Acquisition will add assets to our platform and also strengthen key elements of our proposition for the future.
“It is financially attractive and our route to full integration is clear. We look forward to welcoming the Harpsden team and feel confident that we are creating a stronger and more capable Wealth Business with clear differentiation.”
In October this year, WH Ireland revealed that it has registered its first half-year profit for five years, aided by a prolonged overhaul.
Notably, this August, the firm received the regulatory clearance for the sale of its Isle of Man arm to investment manager Ravenscroft.