Nucleus announced a recommended cash acquisition of Curtis Banks Group for consideration of 350p per share - valuing the rival financial services firm at £242m.
The transaction would create a retirement-focused adviser platform with approximately £80bn of assets under administration.
Bristol-based Curtis Banks’ specialises in personal and small company pension products, while Edinburgh-headquartered Nucleus runs one of the largest UK financial adviser platforms.
Advisers currently served by Curtis Banks would gain access to a broader suite of platform services, including ISAs, onshore and offshore bonds.
Curtis Banks has unanimously recommended that its shareholders vote in favour of the transaction, alongside irrevocable undertakings to vote in favour of the transaction from founding shareholders Christopher Banks, Rupert Curtis, Sally Curtis and Paul Tarran, as well as the Oryx International Growth Fund and Odyssean Investment Trust, which in total represent approximately 49% of issued share capital.
Accordingly, Nucleus has received irrevocable undertakings and a letter of intent to vote in favour of the transaction representing, in aggregate, approximately 54% of Curtis Banks’ issued share capital.
The acquisition is still conditional on approval by wider shareholders and the receipt of clearances from relevant regulators, but is expected to complete in the second quarter.
Richard Rowney, Nucleus Group chief executive, said: “Our ambition remains to create the UK’s leading platform, exclusively for financial advisers to help them make retirement more rewarding for their customers.
“As one of the UK's largest independent SIPP and SSAS providers, Curtis Banks not only adds further significant scale to our business but will complement our existing expertise and benefit our combined adviser base providing added flexibility and optionality.”
David Barral, executive chairman of Curtis Banks, said: “We recognise Nucleus’ established reputation and strength in the adviser platform market, as well as our shared customer-centric approach and aligned corporate values.
“The combined group’s greater scale, efficient platform, broader product proposition and enhanced ability to invest in technology and service will benefit all stakeholders.“
In August 2021, James Hay Partnership acquired Nucleus and combined both businesses to create the Nucleus Group.
Over the last two years, the group has overhauled and invested in its senior management team, as well as hiring 120 new staff across the business in the last 12 months alone, across offices in Edinburgh, Glasgow and Salisbury.
The major shareholders of the Nucleus Group are HPS and Epiris.
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