Wealth management group Kingswood has acquired Glasgow-based financial advice firm Strategic Asset Managers (SAM).
The business will be acquired for total cash consideration of up to £5.1m, payable over a two-year period, with £3.1m paid on completion and the balance paid on a deferred basis, subject to the achievement of pre-agreed performance targets.
Kingswood will satisfy the consideration through the utilisation of a new funding facility, confirmed last month.
SAM works with families, businesses and professional partners across central Scotland and Perthshire. The team has three advisers and a total of eight employees, managing more than 400 clients with over £200m of assets under advice.
In the year ending 31 March, SAM generated revenue of £1.2m and profit before tax of £517,000.
Derek Stewart, chief executive of SAM, commented: "SAM was formed in 2001 and put the client at the centre of our proposition through our highly qualified and dedicated team of professionals - so we're proud to be the first Scottish firm to become part of the Kingswood Group."
Fiona Stewart, managing director of SAM, added: "We have worked closely with Kingswood's key personnel during the due diligence process and have been impressed by the quality of their people, their vision and technology.
"Joining Kingswood will allow our clients and staff access to technology and resources that were out of our reach as a smaller advisory firm."
David Lawrence, Kingswood Group chief executive, commented: "I'm pleased to announce another step forward in the growth of Kingswood as we expand our footprint into Scotland.
"When we are considering acquisitions, we do so with the upmost care, to ensure cultural and client focused alignment.
"Kingswood's build and buy strategy continues, with a further four purchase transactions under exclusive due diligence, that we expect to close in the coming months, plus additional transactions that are currently under negotiation."
Kingswood is an AIM-listed, international group, with circa £9.5bn of assets under advice and management. It services circa 19,000 clients from a growing network of offices across the UK with overseas offices in South Africa and the US.
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