Private equity firm Pollen Street Capital has set up an acquisition vehicle, Tiger Bidco, to acquire Mattioli Woods for £432m in cash.

This week the firms reported that 95.65% of shareholders had voted in favour of the takeover with only 4.35% voting against.

Under the deal, Pollen's Tiger Bidco will pay 804p in cash for Mattioli Woods shares, a 34% premium to the Mattioli share price on 7 March.

Mattioli Woods has acquired several firms in recent years itself, including a number of Financial Planning firms. Pollen Street Capital has also made a number of acquisitions in the financial services sector and owns expanding wealth manager and Financial Planner Kingswood.

In February, Mattioli Woods reported pre-tax profits up 60% to £7.6m in the six months ended 30 November 2023 with revenue over the same period up 8% to £59.1m

The company reported increased demand for wealth management and Financial Planning advice.

The Pollen Street Capital takeover of Mattioli Woods is still subject to regulatory and final court approval.

Pollen Street and Mattioli Woods announced this week that all shareholder resolutions related to the takeover had been passed.

The scheme remains subject to approval at the Court Sanction Hearing and the satisfaction of other conditions to the Scheme, including FCA approval.

The takeover is expected to be completed by the third quarter of this year.