Tatton has the option to acquire a further 50% of the DFM under the deal.

8AM is an investment manager primarily focussed on delivering risk-profiled model portfolios and a small range of multi-manager funds.

Tatton expects 8AM’s assets under management to rise to at least £0.8bn and anticipates it will generate adjusted operating profit of £0.7m in its first full year of ownership.

It said that the acquisition will provide Financial Planning clients access to an extended range of risk profiled investments utilising 8AM's products.

Tatton has paid a £3.5m initial consideration, payable through the issue of new shares. It will later pay a £3.5m deferred consideration payable in equal cash instalments against financial performance targets at the end of the first year and second year post completion.

The investment manager and adviser support services provider had been waiting for regulatory approval to complete the deal.

Paul Hogarth, CEO of Tatton Asset Management, said: "I am delighted to announce the completion of the acquisition of 50% of the share capital of 8AM Global Limited, an ambitious and growing DFM MPS business. The business complements TAM's existing core MPS offering which has continued to see strong net inflows over the first four months of this financial year.

“8AM brings with it an experienced and motivated management team who are well known to us and culturally aligned to the values of the Group. We are very much looking forward to working with them.”

Tatton initially announced the deal as part of a trading update with financial results for the year ending 31 March.

Assets under management for the investment manager increased 26% over the year to £11.34bn.

Total inflows for the year rose 14.2% to £1.277bn.

Tatton’s acquisition of the Verbatim funds during the year added £0.65bn.