10th Feb 2015 08:02
LONDON (Alliance News) - AFH Financial Group PLC Tuesday said it has acquired KL Plester Financial Services Holdings Ltd for up to GBP1.7 million in cash, marking its seventh acquisition since listing on AIM last June.
In a statement, the financial advisory and wealth manager said GBP745,200 is payable on completion of the deal for Plester, which is based in Kidderminster, Worcestershire, followed by a further GBP972,000 payable in two tranches over the next 26 months depending on performance. AFH said it will use existing cash resources to make the acquisition.
The Plester acquisition will add about GBP600,000 per annum of recurring revenue, according to AFH Financial. Jon Rowe and Keith Plester's clients will be taken over by AFH's existing advisers following their retirement on completion.
Peter Machin, a director and shareholder of Plester, will join AFH with immediate effect as a financial adviser.
"It is good that the flexibility of our acquisition model accommodates the varying needs of the principals within the business. In this case, allowing the retirement of Jon and Keith, and the continuance of Peter's career within a larger group, with all three able to crystallise the value in their business," Alan Hudson, chief executive, said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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