CompaniesFeb 25 2015

OM Wealth completes Quilter Cheviot acquisition

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OM Wealth completes Quilter Cheviot acquisition

Old Mutual Wealth has received regulatory approval for its acquisition of Quilter Cheviot, making the deal official today (25 February).

OM Wealth called the transaction a “significant milestone” in its transition from primarily a platform business to an integrated wealth management business for advisers and customers.

The deal was first announced last October, for a consideration of up to £585m. In July last year, Old Mutual moved into financial advice through the acquisition of Intrinsic.

The acquisition of Quilter Cheviot brings a discretionary investment management service intended to sit alongside OM Wealth’s existing packaged investment solutions WealthSelect, Cirilium and Spectrum, helping it meet the needs of the growing number of affluent and high net worth investors.

OM Wealth promised to leave the discretionary investment management process unchanged, adding that Quilter Cheviot’s clients would benefit from improved buying power of the combined group.

At the end of 2014, Quilter Cheviot had £16.7bn funds under management and 500 employees, including 165 investment managers.

As part of the consideration for the acquisition, Old Mutual will issue additional restricted ordinary shares to a trust established for the benefit of certain of the employee shareholders in Quilter Cheviot.

Martin Baines, chief executive of Quilter Cheviot, will join the OM Wealth executive committee, reporting to chief executive Paul Feeney.

Mr Feeney commented that most customers are not looking for platforms or for funds; they are looking for solutions.

“At Old Mutual Wealth we believe that means advice from a trusted adviser, investment solutions that match that advice and investment performance you can rely on from a world class asset manager.

“The acquisition of Quilter Cheviot is an important step in delivering a complete set of solutions to meet the wide ranging needs of advisers and clients.”

peter.walker@ft.com