AFH Financial Group told the Stock Exchange this morning that it has bought K L Plester Financial Services Holdings, based in Kidderminster, Worcestershire.
AFH will pay £745,200 on completion of the deal, followed by a further amount up to £972,000 over the next 26 months dependent upon the performance of Plester over the next two years.
This follows the acquisitions of Roxborough Consultancy and First Class Financial Management last week.
AFH has made seven acquisitions since being listed on AIM in June 2014.
The Plester acquisition will add approximately £600,000 per annum of recurring revenue, AFH said.
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Jon Rowe and Keith Plester's clients will be taken over by AFH's existing advisers following their retirement on completion. Peter Machin, a director and shareholder of Plester, will join AFH with immediate effect as a financial adviser.
Alan Hudson, chief executive of AFH, said: "We are pleased to announce the acquisition of Kidderminster-based Plester.
"It is good that the flexibility of our acquisition model accommodates the varying needs of the principals within the business. In this case, allowing the retirement of Jon and Keith, and the continuance of Peter's career within a larger group, with all three able to crystallise the value in their business. I look forward to working with Peter in the years to come."
The two acquisitions earlier this month are estimated to add a further £55m to AFH's Funds Under Management.