Annuities provider MGM Advantage has acquired equity release specialist Stonehaven for an undisclosed sum.
Stonehaven will be a wholly-owned subsidiary of MGM and will continue as a separate brand, according to a statement. It will continue to focus on the lifetime mortgage market and sales through intermediaries, according to Jayne Almond, chairman of the business.
Stonehaven will also continue to develop its third-party servicing business, through its subsidiary Onyx, she added.
Ms Almond said: “This deal secures long-term funding which will allow us to develop more rapidly.
“Joining forces with the group at this exciting time allows us to fully unlock the potential in the business, securing the capital to help us provide solutions to meet consumer needs.”
The acquisition is subject to regulatory approval, with the deal expected to complete this Spring.
On completion, Ms Almond will join the board of MGM Advantage group as a non-executive director. Georgina Smith, managing director, will continue to manage operations, reporting into Chris Evans, group chief executive of MGM Advantage.