Canada-based Canaccord Genuity Group has agreed to acquire Thomas Miller Wealth Management (TMWML) and Thomas Miller Investment (Isle of Man) for a price of up to C$48.6m (£28m).
Image: TMWML and Thomas Miller Investment to be acquired by Canaccord Genuity. Photo: courtesy of rawpixel/Pixabay.
The acquisition will be carried out by Canaccord Genuity Wealth Management (CGWM (UK)), the Canadian financial services firm’s UK and Europe-based wealth management business.
The Canadian firm said that the transaction will help it grow its UK and Isle of Man coverage while contributing to additional growth in client assets, thereby further increasing contributions from its wealth management operations.
Headquartered in London, TMWML is a wealth manager, which offers financial planning and investment management services to private clients, charities, trusts and corporates across the UK.
TMWML’s client assets and that of the private client investment management business in the Isle of Man, put together, are worth around C$1.8bn (£1.0bn). For the year ended 31 December 2018, the two businesses had combined revenue of about C$14.8m (£8.4m).
CGWM (UK) CEO David Esfandi said: “The addition of Thomas Miller Investment’s private client business supports our long-term strategic ambition of expanding our footprint, whilst enhancing our financial planning business to ensure a truly client-centric offering that is essential for the future generational planning needs of our growing client base.
“With a modern and scalable platform, we have a proven track record of integrating businesses and client assets and we are deeply committed to ensuring that the business and clients of Thomas Miller Investment will have a successful future with CGWM (UK).”
Under the terms of the deal, Canaccord Genuity will pay a total of C$31.8m (£18.5m) to the two companies at the time of closing. It will also pay an additional consideration of up to C$16.8m (£9.5m) based on performance targets related to revenue and client assets, which will be payable over three years after the closing of the deal.
The transaction is expected to enable Thomas Miller Investment to focus on its core institutional investment management activities.
Thomas Miller Investment CEO Hugh Titcomb said: “We are very proud of how the Thomas Miller Investment private client activities have developed over the past few years.
“We believe the transfer of the business to Canaccord Genuity Wealth Management provides an exciting opportunity to continue this development for the benefit of our clients and staff, supported by the significant resources and commitment provided by the Company.”
The transaction, which will be subject to customary closing conditions including receipt of regulatory approval, is likely to be closed during the quarter ended 30 June 2019.