Consolidator AFH has completed the takeover of the client portfolios of Meritor, the financial advisory arm of UK-based law firm Freeths.
The deal is expected to add around £330,000 of annual recurring revenue to AFH’s books.
AFH will pay a maximum consideration of £530,000 for the deal, with an initial cash consideration of £330,000 funded by its existing cash resources. The remainder will be paid in cash over the next 14 months, based on the performance of the assets acquired.
Meritor adviser Karen Pincher will join AFH’s advice team as part of the deal, while continuing to work with Freeths and managing around £60m of investments for 275 clients.
AFH CEO Alan Hudson said: “The acquisition of the assets of Meritor provides a pathway to work with Freeths in the future to provide their clients with access to the AFH advice and asset management model and gain advantage from the scale that AFH provides.
“We are aware of a number of similar businesses linked to legal and audit practices that are deemed non-core to those organisations. We believe that the mutual benefits of this transaction will demonstrate the commercial advantages to similar organisations and their clients in the future.”