28th Mar 2019 09:58
LONDON (Alliance News) - Wealth management firm Mattioli Woods PLC said Thursday it had acquired pension advisor SSAS Solutions UK Ltd for up to GBP4.0 million.
Mattioli Woods will pay an initial GBP2.5 million for the Belfast-based firm broadly equally between cash and shares. A further GBP1.5 million deferred consideration could be payable over the following two years subject to profit targets being met.
For the year ended March 31, 2018, SSAS generated GBP610,000 in pretax profit on revenue of GBP1.01 million. The acquisition is expected to be earnings enhancing in the first full year of ownership, Mattioli Woods added.
"This acquisition is an important step forward for Mattioli Woods, as we continue to expand our operations," Mattioli Woods Chief Executive Ian Mattioli said. "SSAS Solutions is a great fit culturally and strategically, serving a similar client base to our existing business."
"The transaction gives us an exciting new distribution channel for Mattioli Woods' services, with the opportunity to enhance the existing client offering to include Self-invested Personal Pensions," Mattioli added. "I believe extending our geographic footprint strengthens our position, making the group the only SSAS and SIPP operator based in Northern Ireland."
To fund the share element of the initial consideration, Mattioli Woods will issue 162,654 shares to raise GBP1.26 million. This will leave the firm with 26.7 million shares outstanding.
Shares in Mattioli Woods were untraded at 775.00 pence on Thursday.
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