Mattioli Woods Share News (MTW)

(Sharecast News) - Wealth management and employee benefits company Mattioli Woods has entered into a binding agreement to acquire 100% of the issued share capital of Hurley Partners - the private client adviser and asset management business with offices in London, Surrey and Manchester - from its shareholders, it announced on Wednesday.
The AIM-traded firm described Hurley as an established wealth management business, with specialist pension expertise and a discretionary investment management offering.

It said total consideration consisted of up to ?25.6m, comprising upfront consideration of ?10.6m in cash and ?7m in new ordinary shares in Mattioli Woods, as well as contingent consideration of up to ?8m payable in cash in the two years following completion, dependant on Hurley meeting and outperforming forecast earnings;

Mattioli Woods said the acquisition offered a "compelling rationale", describing it as a "high quality opportunity" that would extend its geographic footprint into Surrey, add direct equity investment expertise to its existing discretionary management proposition, and add experienced advisers to its consultancy team.

The acquisition was expected to be earnings-enhancing in the first full year of ownership.

"This exciting acquisition is an important step forward for Mattioli Woods, as we continue to expand our operations," said chief executive officer Ian Mattioli.

"Our discussions with the management team have confirmed the strong cultural fit and our common approach to looking after clients, where the strategy of growing the enlarged group with the client always in mind clearly resonates.

"Hurley Partners serves a similar client base to Mattioli Woods, with the many complementary elements between our businesses enhancing our specialist pension knowledge, discretionary portfolio management and financial planning propositions."

Mattioli said the company believed the range of products and services that Mattioli Woods had to offer could support the "excellent outcomes" from which Hurley's clients already benefitte.

In addition, he said there were cost savings to be realised from combining operations in London and Manchester.

"The Hurley team has a proven ability to win high quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods' services.

"Acting with integrity and treating clients as we would wish to be treated ourselves are central to our culture and key to maintaining the long-term multi-generational client relationships that will deliver value for all stakeholders."

Ian Mattioli said the acquisition would provide a long term, value-accretive opportunity for the group, despite the broader challenges the market was currently experiencing.

"Like Mattioli Woods, part of Hurley's revenues are fee-based, rather than being linked to the value of assets under management, administration or advice , giving our combined business a revenue profile that is less sensitive to market performance.

"Our profit outlook for the year remains in line with management's expectations and I believe this transaction will strengthen our position in a market that is continuing to consolidate."

At 1122 GMT, shares in Mattioli Woods were down 1.01% at 782p.