LONDON (Alliance News) - AFH Financial Group PLC said Monday it had acquired wealth management firm Core Financial Holdings Ltd for up to GBP7.7 million.
Kent, England, -based Core has over GBP230 million in funds under management with a strong emphasis in the south east of England. As part of the deal, Mark Sutton and nine advisors and their support staff will join AFH from Core.
AFH will pay an initial GBP3.2 million in cash. Further deferred consideration will be paid in cash over the following 26 months subject to unspecified performance criteria being achieved. The acquisition will be funded using existing resources.
For the year ended March, Core generated GBP180,000 in pretax profit on revenue of GBP3.8 million. On a prof-forma basis, however, including acquisitions its profit would have been GBP1.4 million.
"The acquisition of Core is our sixteenth transaction of the year and significantly expands AFH's position in the South East," AFH Chief Executive Officer Alan Hudson said. "I am pleased to welcome Mark and his team to AFH and I look forward to working with them to further the development of the AFH brand and continue our growth for the benefit of our new clients and to increase shareholder value."
Shares in AFH were 0.8% higher at 405.00 pence on Monday.