The deal will be made partly in cash and partly in the issue of over 460,000 new ordinary shares of 1p in Mattioli Woods.

Kudos is based in Aberdeen and had 45 staff with offices in Aberdeen, Glasgow and London.

The Kudos management team will be retained within the new combined company.

Mattioli Woods says the acquisitions provide it with a strong employee benefit proposition when there are clear opportunities in the sector with the upcoming Nest and auto-enrolment implementation.

It also offers Mattioli Woods’ Sipps to a wider audience and adds a specialist wealth management business to its existing operations.

Ian Mattioli, chief executive of Mattioli Woods, said: “In addition to extending our geographic footprint, the acquisition gives us the ability to offer our core Sipp, property and investment products to Kudos clients and to offer enhanced employee benefits services to Mattioli Woods clients and the wider market.”

Jim Tennent, chief executive of Kudos, said: “Joining the Mattioli Woods Group offers valuable opportunities for clients and employees in both organisations.

“The enhanced scale of the business gives us the ability to provide additional value-added services to clients of both firms from ‘cradle to grave’ and strengthens our holistic approach to the provision of wealth management and employee benefits advice.”