Leicester, England-based Mattioli Woods PLC said it acquired Broughtons Financial Planning Ltd. from its shareholder for a total consideration of up to £4.0 million.
The consideration comprises an initial cash payment of £2.1 million and 77,171 new ordinary shares of 1 pence each in Mattioli Woods. The new shares are valued at £600,000 based on the company's Aug. 8 closing share price.
Mattioli Woods will also pay a deferred consideration of up to £1.3 million in cash in the two years after completion of the deal, subject to certain financial targets being met on growth in earnings before interest, tax, depreciation and amortization generated during that period.
Payment of the initial cash consideration, deal costs and estimated net asset adjustment resulted in a cash outflow at completion of £2.2 million, Mattioli Woods said.
Mattioli Woods noted it has applied to the AIM stock exchange for the admission of the consideration shares to trading, effective Aug. 15. Following the issue of the shares, the total number of ordinary shares of 1 pence each in the company with voting rights will be 26,276,770.
Broughtons is based in Oldbury in the West Midlands region of central England. It provides financial planning advice and has 250 individual clients with over £120 million of assets under advice.