21 May 2018 07:00
21 May 2018
AFH FINANCIAL GROUP PLC
("AFH" or the "Company")
ACQUISITION OF THE ASSETS OF MERITOR LIMITED
The Board of AFH, a leading financial planning led wealth management firm, is pleased to announce the completion of the acquisition of the client portfolios of Meritor, the financial advisory business of Freeths LLP, a national legal practice.
Under the terms of the acquisition, the maximum purchase price is £0.53m dependent upon performance criteria of the assets acquired. The transaction is expected to add approximately £330,000 of annual recurring revenue.
The initial consideration for the acquisition is £330,000 in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 14 months, subject to performance criteria of the assets acquired being achieved.
Commenting, Alan Hudson, Chief Executive of AFH, said:
"This latest acquisition will continue the expansion of our national distribution in our core mass affluent and high net worth client base. The acquisition of the assets of Meritor provides a pathway to work with Freeths in the future to provide their clients with access to the AFH advice and asset management model and gain advantage from the scale that AFH provides.
We are aware of a number of similar businesses linked to legal and audit practices that are deemed non-core to those organisations. We believe that the mutual benefits of this transaction will demonstrate the commercial advantages to similar organisations and their clients in the future"
Enquiries:
AFH Financial Group PLC 01527 577 775
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
www.afhfinancialgroup.com
Liberum (Nominated Adviser and Broker) 020 3100 2000
John Fishley/Richard Bootle
This announcement is released by AFH Financial Group plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Paul Wright, Chief Financial Officer.