Intrinsic buys Carby's Caerus network

Intrinsic buys Carby's Caerus network

Intrinsic has agreed to buy financial advice network Caerus for an undisclosed sum.

The deal is expected to complete in the second quarter of 2017 after Intrinsic’s offer was accepted by the Caerus board.

Caerus has more than 300 advisers who are responsible for more than £4bn of client assets.

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Intrinsic currently has 3,300 advisers.

Andy Thompson, chief executive of Intrinsic, said: “This is an exciting opportunity for Intrinsic and Old Mutual Wealth to grow its distribution capability.

“We believe Caerus is a good fit for Intrinsic in terms of the business culture and the profile of its advisers and clients.

“Along with all my colleagues at Intrinsic, I am excited to have the opportunity to work with Caerus staff and advisers, subject to the offer receiving shareholder and regulatory approval.”

Last year Sanlam pulled out of a deal to buy a stake in Caerus which would have involved the outsourcing of all investment management activities to Sanlam Four.

Keith Carby, chief executive and chairman of Caerus, said: “Almost 90 per cent of shares are held by people who work in the business.

“Their acceptance of the offer clearly demonstrates that it is in their best long-term interests, and the long-term interests of the business.

“The transaction provides both a very good return on investment, as well as enhancing prospects for the future for all concerned, with Old Mutual Wealth undoubtedly becoming a leading force in UK personal financial services.”

Old Mutual Wealth completed its buy-out of Intrinsic in July 2014.

Last year it received £25m from its parent company towards investment in its infrastructure.