U.K.-based wealth manager Kingswood Holdings Ltd. will acquire financial planner WFI Financial LLP for a cash consideration of up to £14.0 million, which will be paid out in tranches over a 30-month period.
Kingswood said £3.5 million will be paid out once the acquisition is completed at the end of September. The remaining balance will be paid out on a deferred basis, conditional upon WFI meeting pre-agreed asset migration, recurring revenue and EBITDA targets over 30 months following completion. The final deferred payment will be due in February 2022.
Kingswood expects the acquisition to be immediately earnings-accretive.
WFI has more than £550.0 million in AUM. The acquisition will lift Kingswood's AUM to over £2.5 billion with roughly 5,500 active clients.
Separately, Kingswood said it is in the final stages of due diligence with an institutional investor for a significant capital injection. The WFI acquisition is not dependent on the outcome of said growth capital.
