Harwood Wealth Management Group has acquired Network Direct, it was announced this morning. The takeover of the Wolverhampton company is subject to Financial Conduct Authority approval.

NDL has a network of 107 financial advisers with assets under influence of £1bn.

Peter Mann, chairman of HWMG, said it was the most significant takeover to date. He said: "We are extremely pleased to be able to announce this key strategic acquisition.

“We anticipate that the Acquisition will enable us to further leverage our existing investment solutions to the benefit of NDL’s advisers and clients, and also that it will enable us to expand our reach across the UK where there is a growing market for the delivery of quality investment management and advice.

“We welcome the NDL team and advisers to the group, and look forward to working with them to deliver fully integrated investment solutions to their clients."

NDL is being sold by its principal shareholders, Willian Wynn, Jenifer Schwartz, Brian Raymond, Richard Simon and Leslie Dennis Lee, together with various other minority shareholders.

Adviser firms within NDL’s network pay a fee to it depending on the number of advisers within their business.

The maximum consideration payable for the acquisition will be £4 million, based on the performance of NDL over the next 5 years.

Initial consideration of £1 million has been paid from the company’s existing cash resources.

Further deferred consideration of up to £3 million will be payable in cash over the 5 year period following completion, depending on the quantity of the existing AuI which are converted into assets under management over the 5 year period post-completion.