The buy out by Embark, Sipp provider Hornbuckle‘s parent firm, was revealed this afternoon.
The move is Embark’s latest acquisition after last year buying platform provider Avalon and as Sipp provider Rowanmoor. It also recently bought online DFM analyst DISCUS.
The EBS deal comprises £2m initially, with a further £1m fixed consideration across two years, and £1m over two years based on the future revenues of EBS.
Charles Stanley said it would enable it to focus on its wealth investment management activities whilst enabling EBS to become part of a group that specialises in Sipp and SSAS pension administration.
A statement revealed that EBS will be operated as a standalone unit of the Embark Group but will have full access to its capabilities, technology and capital. Charles Stanley and Embark said they will become on-going partners for Sipp and SSAS services to Charles Stanley clients.
Phil Smith, Group CEO of Embark, said: "The nature of the EBS business fits perfectly with our long-term plans. It has excellent people, one of the best-managed books of business in the Sipp industry, and high quality anchor distribution clients. It offers excellent value to us, and with our digital and technical capabilities, EBS will trade profitably going forward."
Paul Abberley, CEO of Charles Stanley, said: "We are delighted with this transaction. It is simultaneously right for all stakeholders of the EBS business, present and future, and most importantly the underlying consumers. We look forward to a long commercial partnership with the team at Embark."