Brooks Macdonald Asset Management has acquired independent investment firm DPZ Capital Limited for a total consideration of a maximum of £13m.
The initial consideration for the business will be £5.7m, made up of £3m in cash and the issue of new ordinary shares in the group at a value of £2.7m. A further payment in cash of £2.4m will be paid in October 2014.
Brooks said that should the full value of DPZ funds under management transfer to its international business, based on their value as at 31 March 2014 the consideration would be £10.8m. The final price will depend on asset fluctuations up to a maximum of £13m.
The AIM-listed wealth management group said the acquisition will allow “significant expansion” of the group’s international and offshore division. It also increases pro forma discretionary funds under management by £360m to £6.04bn.
Chris Macdonald, chief executive of Brooks Macdonald Group, said: “This is a very exciting acquisition for the Group in line with our strategy to expand our international division based in Jersey. DPZ is a high quality asset management business that has strong investment management and cultural synergies with the group.
“As well as adding scale to our international business DPZ bring a highly talented investment management team and additional skills to expand our offering. We very much welcome DPZ into the group.”
