The consideration of the transaction comprises GBP1.9 million initial cash consideration paid on completion plus up to GBP0.2 million for the net assets of IFS. In addition up to a further GBP2.1 million will be paid by way of loan notes in the two-year period following completion. The loan notes are redeemable for cash six months after issue. The amount of loan notes issued will be contingent on the level of turnover produced by IFS in the two year period following completion.
The acquisition adds approximately GBP110 million to the group’s funds under management and further strengthens the group’s private client financial planning business. The acquired business will be absorbed into Ashcourt’s financial planning arm Ashcourt Financial Planning resulting in operational cost savings. The acquisition is expected to be earnings enhancing in the financial year to March 31, 2009.
John Morton, group CEO of Syndicate Asset Management, said: This acquisition meets one of Syndicate’s continued strategic aims to grow via acquisitions that deliver cost savings through synergies with its existing underlying businesses.
