The acquisition will add £51m of funds under management, says consolidator AFH, taking the company's total funds under management above the £900m mark. Diane Knight and Bridget O'Byrne of Knight O'Byrne will join AFH as advisers.
Under the terms of the deal, the maximum to be paid by AFH will be £1.2 million with an initial cash payment on completion of £525,000, followed by a further cash sum of up to £675,000, payable over the next 26 months in three tranches and dependent on the performance of Knight O'Byrne over the next two years.
The acquisition was completed today (3 November 2014). Knight O'Byrne is AFH's fourth acquisition since the company listed on AIM in June 2014 and is the second chartered financial planning firm the company has acquired since listing on AIM following the acquisition of Finlay Gow & Company Limited in July.
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Today's news follows the acquisition of Hindsight Financial Services Limited in September as part of AFH's strategy of select national expansion.
Alan Hudson, chief executive of AFH, said: "AFH further cements its position as a leading UK IFA by selective acquisitions including Knight O'Byrne. Creating yet another national footprint we welcome Diane and Bridget to the team at a time that sees our funds under management increase to a record high.
"Shareholders can expect continued strong news-flow over the forthcoming period, and the company looks forward to providing the market with an update on trading in due course."