Canaccord Genuity has struck a £28 million deal to buy the wealth divisions of Thomas Miller Wealth Management, New Model Adviser®'s sister title Wealth Manager has revealed.
The acquisition, which was made through its Canaccord Genuity Wealth Management (CGWM) subsidiary, comprises an £18.5 million payment on completion, expected to be in the second quarter if regulatory approval is met.
A further £9.5 million will be paid over a three-year period subject to certain performance criteria.
The deal is another significant step in the CGWM's UK growth strategy following the 2017 buy of Hargreave Hale. The firm also acquired Worcester-based wealth firm McCarthy Taylor at the start of 2019.
CGWM (UK) chief executive David Esfandi (pictured below) said: 'The addition of Thomas Miller Investment’s private client business supports our long‐term strategic ambition of expanding our footprint, whilst enhancing our financial planning business to ensure a truly client‐centric offering that is essential for the future generational planning needs of our growing client base.'
The acquisition covers Thomas Miller Investments' (TMI) UK and Isle of Man wealth businesses, which offer financial planning and investment management and runs a combined £1 billion. Together, they generated a revenue of around £8.4 million in 2018.
'With a modern and scalable platform, we have a proven track record of integrating businesses and client assets and we are deeply committed to ensuring that the business and clients of Thomas Miller Investment will have a successful future with CGWM (UK),' Esfandi added.
TMI is part of the 130-year old Thomas Miller Group (TMG). Following the sale of its private client operations, it will continue to focus on providing investment solutions to the institutional market.
TMI chief executive Hugh Titcomb (pictured above), who will continue to lead TMI, expressed pride at the firm's development in the last few years.
'We believe the transfer of the business to Canaccord Genuity Wealth Management provides an exciting opportunity to continue this development for the benefit of our clients and staff, supported by the significant resources and commitment provided by the company.'