AFH Financial Group Plc said Jan. 19 that it will acquire the assets of Aberdeenshire, Scotland-based Aberdeen Wealth Management Ltd. and Devon, England-based Shield Direct Ltd.
The maximum consideration payable by AFH Financial under the terms of Aberdeen Wealth Management's acquisition is £556,500. AFH Financial paid an initial cash consideration of £294,000, with two further cash payments of up to £262,500 due over the next 26 months, subject to performance criteria of the acquired assets.
Under the terms of Shield Direct's acquisition, the maximum consideration payable by AFH Financial is £520,000. The initial cash consideration paid was £272,000. Two additional cash payments of up to £248,000 are due over the next 26 months, dependent upon performance criteria of the acquired assets.
Mike Murray will join AFH Financial as an adviser based in Aberdeen after completion of the deals. Other vendors will retire and their clients will be serviced by existing advisers of AFH Financial.
The two independent financial advisory firms will add about £44 million to the company's funds under management, and their acquisition marks AFH Financial's second and third corporate transactions for the current financial year, following the acquisition of David Rushton Associates Ltd.'s assets.