Quilter has agreed a deal to buy national advice company and network Lighthouse for £46.2m.
The acquisition of the AIM listed business is expected to complete during the second quarter of 2019 and will see 400 advisers join Quilter's advice arm Intrinsic.
Quilter will pay £42.2m for the deal, with the remainder of the offer sourced from Lighthouse's excess cash on its balance sheet.
Lighthouse's advice arm and network will merge with Intrinsic, a move expected to "significantly contribute" to Quilter's capacity of delivering advice.
Paul Feeney, chief executive at Quilter, said: "At Quilter, our focus is on delivering good client outcomes and that always starts with advice.
"We are delighted to have agreed a recommended cash offer for Lighthouse and look forward to their advisers joining the Quilter family.
"As the advice market consolidates the strategic acquisition of Lighthouse will help secure Quilter’s position as the place to go for trusted financial advice in the UK."
Malcolm Streatfield, chief executive of Lighthouse, said: "Lighthouse has a rich history, having been on AIM since 2000 and moving from its pre-RDR network roots to its position today as an affinity and professional relationship led, multi-channel financial advisory business.
"We are proud of all Lighthouse has achieved and are excited to continue our journey with Quilter."
In February Lighthouse reported a 5 per cent rise in profits to £2.6m for 2018, with its chairman Richard Last due to stand down from the company’s board and not stand for re-election as a director in May after seven years in the role.
Lighthouse will be the latest acquisition in Quilter's rapid growth, following the wealth manager's acquisition of financial planning firm Charles Derby in February.
An existing member of Quilter's advice network, Charles Derby added 200 advisers to its national advice arm.