Rathbones has agreed to purchase the remaining 80.1% of Vision Independent Financial Planning and Castle Investment Solutions.
Vision is an independent specialist financial advice network focusing mainly on high net worth individuals.
As at August, it had £925 million of assets under advice and 78 advisers operating nationally. Castle operates as a sister company to Vision, providing administrative services.
Rathbones purchased a 19.9% stake in the Vision Group for £2m in October 2012.
Rathbones says that the acquisition of the remaining stake in the Vision Group is part of Rathbones' strategy of broadening its distribution and accessing a “greater share of new business intermediated by financial advisers.” Vision is based in Falmouth but has offices around the UK and advisers nationwide.
Rathbones will pay £5m for the remaining 80% stake plus the net asset value of the acquired businesses on completion and further payments between completion and early 2020 of up to £13 million.
These further payments are dependent on the Vision Group meeting growth and operational targets and will be recorded as non-underlying expenses over that period in accordance with IFRS 3: "Business Combinations". The net asset value will be paid in cash.
All other consideration payments will be made 80% in cash and 20% in new Rathbones shares. The transaction remains subject to regulatory approval.
Philip Howell, chief executive of Rathbones, said: "Our decision to acquire the Vision Group is a reflection of its proven ability to grow and the strong relationship we have built up in the last five years. We very much look forward to sharing in its continued success."
Mike Webb, executive in charge of distribution, said: "The acquisition of this high quality financial advice network reinforces our on-going commitment to intermediary distribution. Vision's independent status will remain intact, securing an unequivocal focus on clients' interests and suitability."
Roger Edwards and Paul Sweaton, founders of the Vision Group, said: "We are delighted to have secured the further backing of such a prestigious company as Rathbones, and one with which we share so many values. It was vitally important to us that any future partner understood the unique Vision culture and ethos that exists within our business, and we look forward to continued growth under new ownership."