The AIM-listed wealth manager said the combined group would have discretionary funds under management of approximately £4.5bn, excluding advisory, property and third party administration assets.
Based in Guernsey and Jersey, Spearpoint has both stockbroking and retirement planning capabilities and Brooks Macdonald said it was a good fit with its growth strategy, as it adds important access to the "expanding international pensions market".
An initial consideration of approximately £23.1m is to be paid on a cash free and debt free basis, payable in a mixture of cash and equity.
Following that, a deferred sum of around £4m will be payable two years from now, in November 2014, based on the value of Spearpoint’s discretionary funds under management at that stage.
Finally, based on the company’s growth projections for Spearpoint’s discretionary funds under management, Brooks Macdonald expects to pay an additional £5m over and above the £4m deferred consideration.
Brooks Macdonald also announced a share placing from which it proposes to raise £21.5m, through the offer of 1,869,566 new ordinary shares at the price of 1,150p per share.
The net proceeds of the placing will be used to pay part of the initial consideration and, according to the group, the placing has received strong support from a mixture of existing and new institutional holders.
The acquisition of Spearpoint is expected to complete on 19 November 2012 and be immediately earnings enhancing, as the firm reported pre-tax profits of £3.91m on revenues of £11.42m for the year ended 31 December 2011.
Chris Macdonald, chief executive of Brooks Macdonald, said: "The acquisition of Spearpoint is a major step forward for the group and captures an opportunity we have been seeking for a number of years. It adds scale, offshore and international capability together with the acquisition of a strong investment management and pensions team."
John Davey, chief executive of Spearpoint, added: "Brooks Macdonald’s proven marketing and distribution and well established brand provide us with the tools to focus on growth. Everyone at Spearpoint is very excited about the opportunities that becoming part of Brooks Macdonald presents."