Advice consolidator AFH has seen its funds under management exceed £5bn with the acquisition of a financial advice business based in the north east.
AFH has paid £10m for CTL Three, which is the parent company of The Insurance Partnership Financial Services, PCWM Limited, IFA Professional Planning, Private Client Wealth Management (Yorkshire) and Kirk Ella Investments Ltd.
Its directors, Paul Hodgson, Paul Newman, Shane Beardsley and Victoria Hicks, will join AFH along with 22 advisers and their support staff, bringing more than £530m of funds under management.
Alan Hudson, chief executive of AFH, said: "The acquisition of CTL is our third transaction of the year and significantly expands AFH's national footprint with over 240 advisers working across the UK and over £5bn of FUM.
"At the start of the 2017 financial year, the board set itself three medium term financial aspirations: funds under management of greater than £5bn, revenues of £75m per annum and underlying EBITDA margin of 20 per cent on revenue. The acquisition of CTL takes our FUM to above £5bn and we remain confident of achieving the remaining targets.
"Under Paul and his management team's leadership CTL has built a strong presence in the north east and I am pleased to welcome Paul and his team to the AFH community."
Under the terms of the deal, AFH will pay an initial £4.2m from its cash resources and give Mr Hodgson 26,178 AFH shares, which are worth £3.82 each.
More will be paid over the next 26 months, subject to performance criteria of the business being achieved.