South African banking group Investec has announced an agreement to acquire Neontar Ltd, parent company of Irish Irish wealth management and corporate finance specialist NCB Group, for an estimated total consideration of €32.4m (£26.9m).
The purchase price is made up of a €4.4m (£3.6m) cash consideration plus the net asset value of Neontar at the time of completion of the transaction, expected in the second quarter of 2012. The NAV is currently estimated at around €28m (£23.3m).
Investec said that the portion of the purchase price made up by the company’s NAV could be settled by the issuance of preference or equity shares, or a combination of shares and cash. It added that the purchase price may be increased as a result of deferred payments dependent on the firm hitting certain earn-out targets.
Neontar-owned NCB provides a range of services including wealth management, corporate finance and investment banking. It was previously owned by National Westminster Bank before the current ownership structure was established following a management buy-out in the wake of the acquisition of National Westminster by the Royal Bank of Scotland in 2000.