Old Mutual Wealth-owned Intrinsic is to acquire financial advice network Caerus.
The deal, which is expected to complete in the second quarter of this year, is awaiting agreement from Caerus shareholders and regulatory approval.
Caerus has more than 300 advisers who manage more than £4bn of client assets. Intrinsic currently has 3,300 advisers.
According to a statement, the Caerus board has unanimously opted to accept the offer with regards to their own holdings and have recommended the offer to other shareholders.
Intrinsic chief executive Andy Thompson says: “We believe Caerus is a good fit for Intrinsic in terms of the business culture and the profile of its advisers and clients. Along with all my colleagues at Intrinsic, I’m excited to have the opportunity to work with Caerus staff and advisers, subject to the offer receiving shareholder and regulatory approval.”
Caerus chief executive and chairman Keith Carby says: “Almost 90 per cent of shares are held by people who work in the business. Their acceptance of the offer clearly demonstrates that it is in their best long-term interests, and the long-term interests of the business.”
Carby adds: “The transaction provides both a very good return on investment, as well as enhancing prospects for the future for all concerned, with Old Mutual Wealth undoubtedly becoming a leading force in UK personal financial services.”
Fund Strategy’s sister title Money Marketing revealed in April 2016 that Sanlam backed out of plans to acquire a 19.9 per cent stake in Caerus, almost a year after the deal was originally agreed.
The South African firm agreed to take a stake in Caerus in June 2015, with the deal including a timeline for Sanlam to acquire the advice firm outright over a two year period.