Sanlam UK will acquire Cheltenham-based Tavistock Financial’s network of 158 financial advisers along with 25 staff. The advisers will join Sanlam’s team of 60 Financial Planners and expand the group’s reach across the UK, according to Salam UK. The acquisition will add £1.5 billion to Sanlam UK’s assets under advice.

The transaction will see Sanlam UK acquire Tavistock Financial's network of financial advisers along with 25 support staff for a total cash consideration of £1 million payable in full on completion which will be used by the group for working capital.

In a statement to the Stock Exchange today confirming the deal, Tavistock said that it estimated that in the year ended 31 March 2017 Tavistock Financial would have reported gross revenues of approximately £13.4m with costs of sales of £12m, and contributed EBITDA of some £109k. The regulatory capital requirement of the business on a stand-alone basis would have been in excess of £500,000.

Sanlam UK CEO Jonathan Polin said: “This is another significant milestone in our mission to build a truly client-centric, advice-led and outcome-focussed business and I look forward to working with all of our new colleagues to making it a success. “

Brian Raven, chief executive of Tavistock Investments Plc, said: “The Tavistock Financial business no longer fits with our strategy but, in disposing of the business, it was important to us that the interests of the staff and advisers were protected.  Sanlam has convinced us that they are the right firm to take the business forward.”

Sanlam Limited is listed on the Johannesburg Stock Exchange with a market capitalisation of £7 billion. It was established in 1918 and provides a range of services to over 10 million clients globally, including insurance, financial planning, investments and wealth management.