Wealth manager WH Ireland is selling its Isle of Man business in a deal worth more than £1.8m.
It comes as the company looks to "streamline" its operations into a smaller number of locations.
In an update to the market this morning (June 29) the wealth manager announced its subsidiary would be bought by Ravenscroft Holdings, the same company which bought Royal London Asset Management's cash management business in 2018.
The deal follows a warning from WH Ireland earlier this year in which it predicted a £2.2m loss for the year to March as a result of the coronavirus crisis.
The wealth manager's Isle of Man subsidiary was launched in 2014, contributing £1.2m of annual revenue to the business and managing £353m of assets as of this month.
Phillip Wale, WH Ireland's chief executive, said :"We are pleased to announce this next step in streamlining WH Ireland's wealth management operations into a smaller number of integrated, larger locations focused on delivering a high quality service to our private clients.
"The disposal of the Isle of Man subsidiary will continue this process whilst freeing up capital and management resources to focus on and invest in growing the core wealth management business and returning it to profitability."
Under the deal the two companies will enter into a "collaboration agreement" to allow WH Ireland to offer services to clients in international jurisdictions.
Ravenscroft is set to pay WH Ireland an initial cash payment of £250,000 and a deferred payment of up to £412,500, depending on the ongoing trade of the Isle of Man office post completion.
Before the deal is completed WH Ireland will also receive loan repayments from the Isle of Man business worth more than £1m.
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