LONDON (Alliance News) - AFH Financial Group PLC on Monday said it completed the acquisition of Devon-based firm LFS & Partners Ltd in a deal worth up to GBP4.2 million, depending on the performance criteria.
The stock was trading 8.6% higher on Monday at 385.60 pence per share.
The wealth management services firm said the initial consideration for the acquisition is GBP2.2 million in cash, which he company plans to fund from its existing resources.
Further deferred consideration will be payable in cash over the next 26 months, AFH Financial said, subject to enhanced performance criteria of the business being achieved.
For the year to the end of August 2017, LFS & Partners generated a pretax profit of GBP425,000. The company is expected to deliver GBP800,000 profit for the year to the end of August 2018.
Following the transaction, AFH Financial expects Owner & Managing Director James Tucker, together with 27 financial and mortgage advisers and their support staff to join the company.
"The acquisition of LFS is our twelfth transaction of the year and enhances AFH's strong position in the South West," said AFH Financial Chief Executive Alan Hudson.
"I look forward to working with them to further the development of the AFH brand and to provide the LFS existing clients with the benefits of the enhanced AFH proposition," added Hudson.
