European Wealth has agreed to acquire to acquire a book of business and certain related assets of Towry Asset Management for a total maximum consideration of £1m.
As at 31 March 2016, the assets under management (AuM) attributable to the transferring assets were approximately £120m.
Profit attributable to the transferring assets was approximately £0.2m for the full year to 31 March 2016, European Wealth said in its statement.
In addition to the consideration, European Wealth will also pay Towry Asset Management an additional £200,000 for the benefit of a loan owing to the seller by a consultant who is transferring to the company.
The clients of the transferring assets, who are principally based in South Africa and the UK and will be managed out of European Wealth’s head office in London.
European Wealth added that intends to build upon the client base of the transferring assets to extend its international reach.
Commenting on the acquisition, European Wealth group CEO John Morton said: "This acquisition further strengthens the group's ability to offer integrated investment management and financial planning services across the UK and internationally. The addition of this book of business will be enhanced by our ability to offer direct international equity investment to our clients."