According to a notice given to the London Stock Exchange, the £1.1m acquisition of Midlands-based Origin Financial will bring a further £88m in funds under management to AFH.
It is the 16th advisory purchase that the national advisory group has made since it listed on the ISDX in June 2011 and provides AFH with a broader reach across the Midlands.
The statement said the maximum consideration for the purchase comprised an initial cash payment within three months of completion of £412,501 from existing resources and a further cash consideration, up to a maximum of £687,499, payable over the 29 months following the acquisition. This depends on the performance of Origin over that period.
After a period of integration, the business will operate from AFH’s Bromsgrove headquarters.
According to the statement, all the advisers and staff of Origin will remain with the company, including the current chief executive, Andrew Smith. He is set to become a divisional director.
Alan Hudson, chairman and chief executive of AFH, said: “We have the necessary capital to make strategic investments in complementary businesses that add immediate value and help promote AFH as a leading UK IFA.”
In August 2012, AFH announced it had raised £2.8m in an equity and a bond issue to fuel its acquisition drive and boost working capital for the business.
Shortly after this, in October, AFH acquired Hemel Hempstead-based CH Financial in a deal worth up to £1m.
Key Facts
Origin purchase price: £1.1m
Origin reported £770,000 in revenue as at 31 December 2012.
Origin’s recurring income at end December 2012 was £440,000
Total fund raise for AFH in August: £2.8m
