Mattioli Woods has snapped up London financial planner Montagu for £2.3m as it looks to broaden its operations in the South East.
Launched in 1996 Montagu provides wealth management advice to more than 150 private and corporate clients, with about £80m of assets under advice. All four of its staffers, based in Twickenham, will transfer to Mattioli Woods following the acquisition.
Mattioli said the acquisition is expected to be “earnings enhancing” within the first year. Last year Montagu generated £0.8m in revenue and profit before tax of £0.3m.
The Aim-listed manager will pay £1.4m for the Twickenham planner upfront and up to £1.0m over the next two years subject to certain revenue targets being met.
Mattioli Woods chief executive Ian Mattioli (pictured) said the deal would expand the wealth manager’s existing operations in London and the South East.
“We believe the range of products and services that Mattioli Woods has to offer can support the excellent outcomes from which Montagu’s client already benefit, whilst offering the potential to realise real revenue synergies by combining our operations,” Mattioli said.
Earlier this year the wealth manager acquired a 4% stake in robo business Tiller Group in a bid to enhance its digital offering and snapped up £233m worth of exempt property unit trusts from BDO Northern Ireland. Last March it bought private client business Hurley Partners for £25.6m.
Chris Simpkin, Montagu’s managing director, added: “We are delighted to become part of the Mattioli Woods Group; one of the UK’s top financial services companies. Our clients and staff will continue to benefit from our combined strong ethos and culture.”
Mattioli Woods has bounced back from the coronavirus crisis with its total client assets exceeding £10bn by the end of November 2020. It reinstated staff bonuses toward the end of last year after its aggressive cost cutting during the pandemic increased profits by over a third.
