Harwood Wealth, an expanding Financial Planning and discretionary wealth management group, has acquired Chartered Financial Planner firm AE Financial Services, in a deal worth more than £6 million.

Hampshire-based Harwood has added the established IFA firm to provide a strategic hub in Southampton and boost Harwood Wealth’s growing presence along the South Coast.

The deal, which has been approved by the FCA, included a purchase price of £4.6m, plus £1.54m for net cash balances.

AE Financial will continue to operate as a standalone brand and will adopt Harwood's processes, technology and investment strategies.

David Hayward, director of AE Financial, will remain with the company.

This deal is Harwood’s most significant acquisition to date and was said to demonstrate “Harwood's growing scale and capabilities.”

For the year ended 31 December 2017, AE Financial reported revenue of £1.3 million and profit before tax of £0.5 million, both unaudited. The business has assets under influence of £130 million.
 
An initial sum of £2.4 million plus cash balances has been paid on completion, paid through the company's existing cash resources.

A further deferred sum of up to £2.2 million will be payable in two tranches over next 24 months, subject to the performance of AE Financial.
 
David Hayward, director of AE Financial said: "We are very pleased to be joining such a well-respected and successful group.

“I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients. We very much look forward to joining the team."
 
Peter Mann, non-executive chairman of Harwood Wealth Management Group, said: "AE Financial is a strong addition to the group and we look forward to welcoming both the team and clients to Harwood Wealth.

“As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture.

“We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead."