Quilter will hold a 5.3 per cent stake in rival Tavistock Investments once it completes its acquisition of advice company and network Lighthouse later this year.
Quilter is set to complete its £46.2m takeover of Lighthouse in the second quarter of this year, with the latter's shareholders voting in favour of the deal earlier this month.
This acquisition will see Quilter take a stake in Tavistock as a result of an investment made by Lighthouse in 2018.
In November 2018 Tavistock and Lighthouse entered into a "strategic agreement" which saw the latter pay £1m for a 5.3 per cent stake in the former.
As part of the agreement the two companies agreed to establish an investment management service together to develop and distribute investment products and services under Lighthouse's Luceo brand.
But in a brief statement to the market yesterday (May 30) Tavistock announced it had terminated its alliance with Lighthouse with immediate effect, due to the "indefinite postponement of agreed marketing activities as a consequence of Quilter Plc's takeover of Lighthouse".
FTAdviser now understands that Lighthouse's investment in Tavistock will remain unchanged as a result of the termination, and its stake in the company will be held by Quilter once its takeover is complete.
Quilter will pay £42.2m for it acquisition of Lighthouse, with the remainder of the offer sourced from the latter's excess cash on its balance sheet.
The acquisition will see 400 advisers join Quilter's advice arm Intrinsic, meaning Quilter will have 3,900 advisers - as many as St James's Place.
rachel.addison@ft.com
