Ravenscroft has agreed to buy WH Ireland’s Isle of Man-based subsidiary WH Ireland (IOM) for GBP 662,500.
The consideration includes an upfront sum of GBP 250,000 in cash, as well as deferred payment of up to GBP 412,500, based on the ongoing trade of the target’s office upon closing.
Furthermore, WH Ireland will receive GBP 1.15 million in loan repayments.
The vendor also plans to enter into a collaboration agreement with Ravenscroft, which will allow the former’s wealth management business to continue to offer services to clients in international jurisdictions.
Completion remains subject to the green light from the Isle of Man Financial Services Authority.
The sale is in line with WH Ireland’s strategy to streamline its wealth management operations into a smaller number of integrated, larger locations.
Philip Wale, chief executive of the vendor, said the disposal would also allow the company to free up its capital and resources.
Formed in 2014, the IOM business provides investment management services to international clients.
It has six employees, including two executive directors, and generates annual revenue of around GBP 1.20 million.
As of 25th June 2020, the target had assets under management of GBP 353.00 million.
Upon closing, the group will be known as Ravenscroft (IOM) and will help expand the acquiror’s services, which include execution only trading, discretionary investment management and the storage of precious metals.
Following the deal, the purchaser will total 120 employees across its offices in Jersey and the UK.
Mark Bousfield, the buyer’s managing director, said: “Ravenscroft’s strategic expansion continues to be achieved through both organic growth and targeted acquisitions of businesses that either expand the services we provide or allow us to offer those services in a new jurisdiction.”
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 179 deals targeting investment advice providers announced globally in 2020 to date.
By far and away the largest of these involved Stone Point Capital and Further Global Capital Management agreeing to buy Duff & Phelps for USD 4.20 billion.
© Zephus Ltd