Rathbones acquires IFA network for £18m

Rathbone Brothers is buying IFA network Vision Independent Financial Planning in an £18m deal.

The wealth manager has to agreed to acquire both the Vision network and its sister company Castle Investment Solutions, which provides administrative services.

Vision focuses on high-net-worth private clients and as at 31 August had £925m in assets under advice and 78 advisers.

Rathbones is buying the remaining 80.1 per cent stake in Vision after it acquired a 19.9 per cent stake in the group in October 2012.

Vision says its will remain independent as part of the deal.

Under the terms of the acquisition, the initial payment will be £5m plus the net asset value of Vision when the deal completes.

Further payments of up to £13m will then be made between the deal concluding and 2020, based on performance and growth targets.

The net asset value will be paid in cash, with other sums paid 80 per cent in cash and 20 per cent in new Rathbones shares.

The deal is subject to regulatory approval.

Rathbones chief executive Philip Howell says: “Our decision to acquire the Vision Group is a reflection of its proven ability to grow and the strong relationship we have built up in the last five years. We very much look forward to sharing in its continued success.”

Vision Group founders Roger Edwards and Paul Sweaton say: “We are delighted to have secured the further backing of such a prestigious company as Rathbones, and one with which we share so many values.

“It was vitally important to us that any future partner understood the unique Vision culture and ethos that exists within our business, and we look forward to continued growth under new ownership.”