Wealth management firm Mattioli Woods has bought West Midlands advice business Broughtons Financial Planning for £4m in cash and shares.
Mattioli Woods paid an initial £2.1 million in cash and £600,000 in its own shares up front, and is scheduled to pay a deferred £1.3m in cash two years after the completion of the transaction, subject to Broughtons meeting certain targets.
Ian Mattioli, Mattioli Woods's chief executive, said: "The combined business gives us all opportunities to grow and develop the client offering.
"Long term stability and sustainability is key to growing a modern financial services group and we will all continue to strive to achieve this. Broughtons has a similar culture to Mattioli Woods and holds high values with the client being at the core of all it does."
Mattioli Woods was founded in 1991 and has offices across the UK, including London, Glasgow, Manchester, Aberdeen and Solihull, with its head office in Leicester. The company had more than £8.7bn of assets under administration before today’s deal.
Broughtons was founded in 2001 and has around £120m of assets under advice, with its base in Oldbury, near West Bromwich.
Gary Bond, managing director of Broughtons, said: "From our initial discussions with Mattioli Woods it was clear that we shared the same values and business culture.
"We are all excited by the opportunity this gives us as we work to create a great financial services business and to be part of a large group which has clients at its core."
Last year Mattioli Woods grew its organic revenue by 11.5 per cent with the help of the acquisitions of MC Trustees and a 49 per cent stake in Amati, a fund management company based in Scotland.