LONDON (Alliance News) - AFH Financial Group PLC on Thursday said it has acquired Davisons Financial Management Ltd, an independent financial adviser based in Devon in the south west of England, for up to GBP2.9 million.
The investment management company said that Davisons Financial Management's advisers joined it on completion of the deal.
Davisons Financial Management is the financial planning division of Davisons Chartered Accountants, according to AFH, which said the accountancy practice will continue to act as an introducer.
"The structure of this deal, which enables the vendors to participate in any future uplift in revenue and profitability through the issue of the consideration shares and will be held for a minimum period of three years, reflects their belief that the sector has significant potential and that our business model is value enhancing," AFH Chief Executive Alan Hudson said in a statement.
AFH paid GBP1.1 million on completion of the deal and issued 71,915 shares at a price of 146 pence each. The deferred amount depends on the profitability of the acquisition over the next 24 months. No more than GBP945,000 of the deferred payment will be settle in cash, with the remainder to be paid in shares.
AFH shares were untraded on Thursday morning at 147.60p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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