(Alliance News) - AssetCo PLC on Friday said it has agreed to buy Saracen Fund Managers Ltd for GBP2.8 million.
The UK-based wealth management company said it intends to issue 166,904 new shares to owners of Saracen, with the remaining GBP664,774 of the consideration satisfied in cash, in each case to be paid on completion.
AssetCo expects to close the transaction in September.
Saracen is a fund management business based in Edinburgh. Saracen generated turnover of GBP985,364 and a loss after tax of GBP15,146 for the financial year to the end of March 2020 and had net assets of GBP400,661.
"The proposed acquisition is part of AssetCo's overall strategy of acquiring and investing in asset and wealth management businesses," noted AssetCo Deputy Chair Peter McKellar.
"Our focus will be on building on Saracen's strong foundations, particularly the experience and expertise of its management team and their investment approach. We aim to grow the business through marketing its existing funds and over time broadening its product range to continue to meet the needs of customers," added McKellar.
AssetCo shares were trading 12% higher in London on Friday morning at 1,400.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Assetco (ASTO)