M&G has bought national IFA Continuum, which has assets of more than £1.5bn, for an undisclosed amount.
The deal, announced to the stock exchange this morning (August 3), will see the company take an initial stake of 49.9 per cent in Continuum, with the remainder acquired over the next two years.
Once the deal is completed, which is subject to regulatory approval, Continuum will become part of M&G Wealth but will retain its own brand.
In its most recent set of results Continuum saw a 37 per cent rise in operating profit, driven in part by acquisitions of a number of IFAs.
David Montgomery, managing director at M&G Wealth, said the deal added another “high class” IFA business to M&G Wealth’s existing network.
"There is a growing need in the UK for consumers to be able to access financial advice services in a way that best suits their circumstances and requirements,” he said.
“This 'advice gap' is something we are keen to help address.
“Continuum has a terrific reputation in the industry and grows our capability to provide a wider range of advice services and investment solutions to more clients."
Martin Brown, managing partner at Continuum, said: "Through market opportunities created by the lack of distribution, an increasing demand for high quality financial advice and changes driven by the pandemic, we extensively reviewed our strategic options to best increase our scale and deliver to this need.
"This development enables us to continue to accelerate the growth of our business sustainably, increase our national footprint of high-quality individuals and enhance our offering to clients and advisers. Ultimately, this allows us to deliver a greater reach to fulfil the growing advice need in the market.
“Importantly this ensures Continuum will progress its long-term ambitions of becoming a household brand and importantly a ‘home for life’ for clients, advisers, staff and future generations to come."
The deal follows M&G’s acquisition of Sandringham Partners in January 2022.
M&G Wealth was launched in September 2020 to bring together Ascentric, a platform acquired from Royal London, Prudential Financial Planning, The Advice Partnership and the M&G Direct funds business, the direct-to-consumer part of M&G Investments, to expand the adviser-based side of the company.
Earlier this year, the company also bought DFM business TCF Investments to move into the model portfolio space.