Wealth manager Rathbone Brothers has agreed to purchase its remaining stake in Cornwall-based IFA Vision Independent Financial Planning and Castle Investment Solutions, subject to regulatory approval.
In October 2012 Rathbones purchased a 19.9 per cent stake in the Vision Group for £2m and the wealth manager had now announced that it has agreed to purchase the remaining 80.1 per cent, subject to regulatory approval.
The wealth manager said the consideration for the 80.1 per cent stake will comprise a payment of £5m plus the net asset value of the acquired business on completion, and further payments between completion and early 2020 of up to £13m.
Further payments are dependent on the Vision Group meeting growth and operational targets, and will be recorded as non-underlying expenses over that period, whilst the net asset value will be paid in cash.
Additionally, all other consideration payments will be made 80 per cent in cash and 20 per cent in new Rathbones shares.
At at 31 August, Vision, an independent specialist financial advice network focusing on high net worth private clients, had £925m of assets under advice and 78 advisers operating nationally.
Castle operates as a sister company to Vision, providing it with administrative services.
Rathbones said that the acquisition of the remaining stake in the Vision Group is part of its strategy of “broadening its distribution and accessing a greater share of new business intermediated by financial advisers”.
Philip Howell, chief executive of Rathbones, said: “Our decision to acquire the Vision Group is a reflection of its proven ability to grow and the strong relationship we have built up in the last five years.
“We very much look forward to sharing in its continued success.”
ruth.gillbe@ft.com
