The AIM listed wealth management group Harwood has acquired independent Southampton-based company AE Financial for a fee which could top £6m.
Harwood Wealth Management Group has snapped up AE Financial Services Ltd, an established chartered independent financial advisory firm based in Southampton.
The purchase price for the acquisition, which has been approved by the FCA, is £4.6m plus £1.54m in respect of net cash balances.
The deal provides Harwood with a strategic hub in Southampton and enhances the group's already established and growing presence along the South Coast.
AE Financial will continue to operate as a standalone brand and will benefit from Harwood's processes, technology and investment strategies.
David Hayward, director of AE Financial, will remain with the company. This is the group's most significant acquisition to date and demonstrates Harwood's growing scale and capabilities.
For the year ended 31 December 2017, AE Financial reported revenue of £1.3m and profit before tax of £0.5m, both unaudited. The business has Assets Under Influence of £130m.
David Hayward, director of AE Financial said: "We are very pleased to be joining such a well-respected and successful group.
“I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients.
“We very much look forward to joining the team."
Peter Mann, non-executive chairman of Harwood Wealth Management Group, said: "AE Financial is a strong addition to the Group and we look forward to welcoming both the team and clients to Harwood Wealth.
“As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture.
“We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead."
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