AFH Financial Group has completed the acquisition of Britton Financial Limited based in Colchester, Essex.
Following the acquisition Ken Kerr will retire and the clients of Britton will be serviced by existing AFH advisers.
Under the terms of the acquisition, the maximum purchase price is £2,081,000 based on the ongoing recurring revenue of the business subject to the fulfilment of certain financial targets.
For the financial year ended 31 May, Britton achieved reported profit before tax of £352,551.
The company estimates that, on a pro forma basis, following the integration of clients to existing AFH advisers, this would have generated a profit before tax of £500,000.
The initial consideration for the acquisition is £1.1m in cash, funded from the company's existing cash resources.
Further deferred consideration will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the business acquired.
(LON:AFHP) AFH Financial Group Plc share price was 0p at 255p