The takeover, for an undisclosed sum, will boost the number of advisers working for Ascot Lloyd to more than 100 and increase staff numbers to more than 400 staff.

Ascot Lloyd’s footprint in the Midlands will be significantly increased.

West Midlands-based Newell Palmer, which is celebrating 25 years in business this year, will add £1.3bn in funds under influence to Ascot Lloyd.

Newell Palmer operates a Financial Planning model from three offices, in Wolverhampton, Bromsgrove and Nuneaton. It focuses on individuals, enterprises and trustees.

The takeover will add approximately £12m in annual revenue for Ascot Lloyd Group and boosts Ascot Lloyd's total assets under advice to over £7 billion. 

Ascot Lloyd Financial Services has grown rapidly in recent years with a number of major acquisitions although recent accounts showed an operating loss for the business of nearly £1.6m in the last financial year, due partly to problems with the takeover of Harvard Financial Management. Revenue also fell by approximately £400,000 to just over £18m.

Ascot Lloyd chief executive Nigel Stockton said the Newell Palmer deal marked a milestone.

He said: “This is an important acquisition for Ascot Lloyd, adding an outstanding business of significant scale to the group. The deal also showcases the strength of Ascot Lloyd as one of the few IFA companies with proven capability in purchasing and integrating a business of Newell Palmer’s size.

“This is the third year running, following EFG, Pantheon and the Bellpenny merger, in which we have completed a major acquisition and this will continue to be part of our strategy.”

“This is part of our clear strategy to expand our regional footprint and client base and will see us grow to well over 100 advisers and 400 employees.

“In addition, the acquisition means we anticipate revenues of over £50m for 2019 as well as double digit EBITDA. I am pleased that we finish 2018 with such momentum, and we look forward to next year with great confidence and excitement.”

Philip Stepp, group managing director, Newell Palmer, said: “This is great news for Newell Palmer and our clients.

“We have known Ascot Lloyd’s management for well over 18 months and I strongly believe that their commitment to IFA and brand strength make it a perfect home for us.”

Newell Palmer will retain its own brand initially before rebranding as Ascot Lloyd next year.