(Sharecast News) - Specialist wealth management and employee benefits business Mattioli Woods has completed the acquisition of 100% of the issued share capital of The Turris Partnership from its shareholders, it announced on Friday, for a total consideration of up to £1.6m.
The AIM-traded firm said Turris specialises in providing chartered financial planning and wealth management advice to its clients, and had more than £65m of assets under advice.
Turris was established in 2003, with Mattioli Woods saying its team of five staff based in Glasgow would be retained following the acquisition.
It generated revenues of £0.45m and profit before tax of £0.15m for the year ended 30 September.
As at 30 September, Turris' gross assets were £0.23m, and its net assets were £0.2m.
The acquisition was expected to be earnings-enhancing in the first full year of ownership.
Mattioli Woods said the total consideration comprised initial cash consideration of £0.8m, subject to adjustment for the value of net assets acquired.
Deferred consideration of up to £0.8m would be payable in cash on the first and second anniversaries of completion, subject to certain financial targets being met based on recurring revenue.
Payment of the initial cash consideration, deal costs and estimated net asset adjustment resulted in a cash outflow at completion for Mattioli Woods of £0.85m.
"We put a great deal of thought into any acquisition that we consider, as it is so important to make sure it is a good cultural fit," said chief executive officer Ian Mattioli.
"We are very pleased that Brian and his team are joining Mattioli Woods. It is an important acquisition for us, as we have been looking to expand our operations in Scotland and opportunities to acquire such a well-respected business don't come along every day."
Brian Steeples, Turris' managing director, added that his company was "really pleased" to be part of the Mattioli Woods Group.
"Our clients and staff will continue to benefit from our strong ethos and culture of putting the clients' interests at the heart of everything we do.
"These values are an embedded part of both Turris' and Mattioli Woods' operations and are a key reason why this deal is such a good fit.
"The additional resources and support available as part of Mattioli Woods will benefit clients and staff and we very much look forward to this exciting new phase."
At 1411 GMT, shares in Mattioli Woods were up 0.62% at 810p.