The £4.2m deal will see the Midlands-based firm significantly expand its presence in the South West with the purchase of the regional firm Lyn Financial Services which has 60 staff.
The deal is one of AFH’s largest so far and Lyn’s £300m takes AFH’s funds under management to more than £3.8bn.
Lyn is an IFA with offices mainly in Devon and Somerset. It offers advice on a range of financial areas including savings and investments, pensions, workplace pensions, mortgages and estate planning.
Lifeassureonline is a Lyn sister company specialising in life insurance and protection which has 15,000 policyholders across the UK. Lyn also joined forces with Ashbeer Wealth Management in 2013. Lyn was originally formed in Lynton in 1986.
Under the deal, all 60 staff at Lyn will join AFH, giving AFH more than 200 advisers across the UK. AFH will also take over Lyn’s three hub offices.
Lyn chairman James Tucker said: “This is a great deal for Lyn’s 5,000 clients, who will receive the same service, delivered by the same advisers and staff, but with the added advantage of AFH’s back-office support and investment expertise.
“The business has grown beyond what I ever thought possible when I started in one room back in 1990, and having met the guys at AFH it seemed right to join forces.”
AFH chief executive and founder Alan Hudson, a Chartered Financial Planner, said: “This is a very significant deal for AFH, giving us three valuable hubs to increase our service to clients in the South West and West as well as increasing our presence in the still-underserved protection market.”