Wealth management firm Saltus has acquired the financial advice businesses of Tavistock for a total consideration of up to £37.75m.
The deal is subject to approval from the regulator and will include the acquisition of Tavistock Partners Limited and the brands Abacus and Duchy.
Tavistock’s advisory businesses operate across the UK and include financial planning, wealth management, and mortgage and protection advice.
The combined businesses will have assets under advice and management of over £7bn and more than 300 employees. The acquisition will contribute £2.4bn of assets under advice, more than 140 advisers and 95 staff.
Tavistock’s advice businesses will continue to be managed by Mal Harper, the existing managing director of Abacus Associates Financial Services. Harper will report to Jon Macintosh, the managing partner of Saltus.
Abacus is already a client of Saltus and the firm has been looking after the investments of Abacus’ clients as well as helping to turnaround the performance of its in-house investment management proposition.
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The deal is expected to complete this autumn following approval from regulators and the shareholders of Tavistock.
Macintosh said: “We are delighted to welcome Mal and his team on board. We are impressed by the record of growth Mal has achieved and the quality of care he and his colleagues provide to their clients.
“There’s a strong strategic case for this deal and the complementary nature of our two businesses will ensure that one plus one equals three.”
Macintosh added: “Saltus enjoys the highest rate of organic growth in the industry, driven in part by a very strong sales and marketing operation, which the Abacus business will benefit from.
“Moreover, the combined business will benefit substantially from having access to the investments we have made at Saltus, particularly in our platform and our client- and adviser-facing technology.
“This is an important deal for us, and it represents an important milestone in our continued story of investing in our proposition to the benefit of partners, colleagues and clients. We are excited about the future.”
Brian Raven, chief executive of Tavistock, said: “We have worked with Mal and his businesses since 2014, so it was important for us to find the best home for him, his advisers and his staff. We believe that is Saltus. Our two businesses may now be moving in different directions, but we wish Mal and his team all the very best for the future.”
Harper added: “We have been impressed by the quality of Saltus and what Jon and the team have achieved and the professionalism and quality of the Saltus operation. Abacus and our associated operations fit neatly into the Saltus mould and will do much to extend the company’s footprint.
“There is plenty more scope for development and investment to come across the entirety of the business and there is much to be gained from applying Saltus technology across our activities. It’s a great cultural fit and our people, partners and clients will be very happy at Saltus and I am thrilled to be joining.”
