Walker Crips Group has purchased 100 per cent of the membership interests in wealth manager Barker Poland Asset Management in a deal that could eventually be worth up to £4m.
The consideration comprises a combination of cash, the value of net assets at completion and new ordinary shares in the company, up to a maximum of £4.1m.
As well as payment for net assets, the initial consideration comprises £1.7m in cash. Dependent on the revenues achieved by the business, there may also be a deferred consideration over the next three years of up to £2m, payable 90 per cent in cash and 10 per cent in new ordinary shares.
This will be payable only if average annual revenues equal or exceed £1.6m over the period following completion.
The acquisition received approval from the Financial Conduct Authority and is part of a plan from Walker Crips to reach a medium-term target of £5bn in assets under management and administration.
At the end of February, Bpam’s assets under management were £229m, of which £192m was discretionary-managed.
Walker Crips’ assets under management are set to pass the £2bn mark, increasing 12.6 per cent post acquisition from £1.8bn at the end of February, while assets under management and administration will increase to £3.5bn.
As a result of the acquisition, Walker Crips is taking on a team of five advisers led by managing director Geoff Wright, and the founder of the business, Pat Barker, who continues as chairman.
According to a statement from the acquiring firm, Bpam has undergone a period of significant transition since the sale of its fund management division in April 2012 and now fits well with the group’s strategy.
It also envisages significant opportunities for cost synergies, particularly arising from use of Walker Crips’ in-house platform and systems, reduced running costs from lower shared administration headcount and reduced premises overheads.
Rodney FitzGerald, chief executive of Walker Crips, said: “Bpam’s business is a complementary bolt-on to our existing offering which, with the combination of our similar investment styles and culture, will facilitate a seamless enhancement for Bpam’s clients.”
peter.walker@ft.com
