Wealth manager Ashcourt Rowan has agreed to buy rival UK Wealth Management for up to £14.25 million in cash plus shares.
The deal, subject to approval from the FCA, will create a national wealth manager offering financial and investment advice to individuals and corporates through a network of 17 offices.
The combined group will have assets under management of £5bn, of which £1.9bn is discretionary, and annual group revenues should be £43.3m.
Ashcourt Rowan says that the move creates a "strategic opportunity to combine two complementary businesses with similar outlooks and ambitions creating a solid platform for stakeholders in both businesses."
The deal also means a bigger network of offices across England and Scotland and adds corporate pensions and benefits to list of services available.
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As at 31 October 2013, Northern-based UKWM had assets under management of £1.3 billion of which £0.3 billion is discretionary. It has annualised revenues of £8.8m of which £6.6m is recurring.
The announcement was made to the Stock Exchange this morning.
Jonathan Polin, group chief executive of Ashcourt Rowan, said "This is a transformative deal for Ashcourt Rowan and an important step on our journey to become a leading UK wealth manager.
"UKWM's business is complementary in terms of culture, outlook, client base and office footprint, adding locations in the North of England where Ashcourt Rowan was previously under-represented.
"The deal will enhance the service we provide to our clients and increase the depth of resources we have to offer, with 77 Financial Planning and corporate advisers across the enlarged business.
"In turn, the additional Financial Flanning resource will support Ashcourt Rowan's long-term organic growth strategy. Our stated aim has been to have a separate division for corporate solutions to support the work we are currently undertaking in auto-enrolment."
• Aschourt Rowan made a pre-tax loss before tax of £2.5m for the six months ended in September 2013. It said the losses were driven primarily by planned exceptional costs to complete its change management programme and costs had been cut.