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Mattioli Woods completes latest acquisition

Mattioli Woods completes latest acquisition

Mattioli Woods has completed its proposed acquisition of Buckinghamshire-based IFA Boyd Coughlan.

Following the admission of the firm placing shares to trading on the Alternative Investment Market at 8am today (23 June), the final condition relating to the deal has now been satisfied and completion has taken place.

The official stock exchange statement follows a trading update at the end of last week in which the wealth manager announced that it had acquired the entire issued share capital of the advisory firm for a total consideration of up to £7m, prompting a fresh capital raising to provide funds for further advice sector buyouts.

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The deal will add over £160m of assets under advice and is expected to be earnings enhancing in the first full year of ownership.

As a result of the transaction, Mattioli said it expected surplus capital currently allocated for acquisitions to be used up.

Also included in last week’s update was a declaration of fundraising worth up to £18.6m by way of a firm placing of up to 2m new ordinary shares and a conditional placing of up to 1.8m new ordinary shares at an issue price of 490 pence per share.

“The placing will provide the company with the flexibility to take advantage of further acquisition opportunities, of which another has been identified and, in relation to which, non-legally-binding heads of terms have been signed,” read the statement.

peter.walker@ft.com