Tavistock Investments has announced plans to acquire IFA firm County Life & Pensions - owner of the Sterling McCall Wealth Management network - and investment manager Blacksquare in a £7.3m deal.
Tavistock says that these purchases mark the beginning of an "ambitious expansion programme" for the recently established AIM quoted group as it plans to assemble a national financial services business.
The total value of the acquisitions is £7.35m and County's turnover last year was £2.8m on which it made £480,000 profit.
County Life & Pensions will be rebranded Tavistock Partners and Blacksquare will be rebranded Tavistock Wealth to form the basis of an integrated group.
County, which owns the Sterling McCall wealth management network, will be the "cornerstone" on which Tavistock intends to build a national network of self-employed advisers. Tavistock will provide advisers with an authorised compliance and investment infrastructure as well as a guarantee to buy their business from them as and when they decide to retire.
Blacksquare will manage model portfolios for clients of the advisory business that will provide each investor with a well-balanced combination of investments covering a range of asset classes and global markets that is structured to target a specific level of risk.
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Stephen Moseley, a founder of County and intended Business Development Director said: "We are delighted to become a key element in Tavistock's plan to establish a national network designed by advisers, for advisers, and to deliver cost effective investment solutions to the retail market."
Brian Raven, Tavistock chief executive said: "Both County and Blacksquare share our commitment to strong corporate governance and best practice. Their commitment to our strategic vision is best illustrated by both sets of shareholders accepting only shares rather than cash. We look forward to working together to develop a business that we hope will become an exemplar to the industry."
County owns the Sterling McCall wealth management network. Sterling McCall provides advice to clients on model portfolio and discretionary investment management, estate planning, pensions and retirement planning, insurance protection and mortgages.
Blacksquare has historically run its own Fund of Hedge Fund and Absolute Return products.