21st May 2018 12:06
LONDON (Alliance News) - Wealth management firm AFH Financial Group PLC said on Monday it completed the purchase of the client portfolios of Meritor for a maximum of GBP530,000, subject to business performance.
Meritor is the financial advisory business of national legal practice Freeths LLP.
The initial consideration for the acquisition is GBP330,000 in cash, AFH Financial said, which it pans to fund from existing cash resources. Further deferred consideration will be payable in cash over the next 14 months, it added, subject to performance criteria of the assets acquired being achieved.
AFH Financial believes that the transaction will add about GBP330,000 of annual recurring revenue.
"This latest acquisition will continue the expansion of our national distribution in our core mass affluent and high net worth client base," said AFH Financial Chief Executive Alan Hudson.
"The acquisition of the assets of Meritor provides a pathway to work with Freeths in the future to provide their clients with access to the AFH advice and asset management model and gain advantage from the scale that AFH provides," Hudson added.
The stock was trading 1.2% lower at 326.00 pence per share on Monday midday.
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