Tilney Bestinvest paid £43.4 million for the acquisition of Ingenious Asset Management it has been revealed.
The company announced its acquisition of the London-based discretionary investment manager in February, which was completed in April for an undisclosed sum.
The purchase was made shortly before the company struck a deal to acquire Towry for £600 million.
Ingenious added £1.8 billion of assets to Tilney Bestinvest, headed up by Peter Hall (pictured). Along with Towry, the combined group will have £20 billion in assets under management (AUM), 240 financial planners and 120 investment managers across 30 offices in the UK.
The amount paid for Ingenious – which was renamed Tilney Asset Management – was disclosed in Tilney’s full-year results to the end of December 2015, filed last week. The price equates to 2.4% of Ingenious’ AUM, a significant discount to the 6.7% multiple paid for Towry.
‘We believe the group is in an excellent position to accelerate its growth during 2016 and beyond given the transformational acquisitions of Ingenious Asset Management and Towry, the strength of our investment track records and success in organic growth. The enlarged business will be able to support clients right across the UK with a comprehensive range of services,’ it noted.
Tilney Bestinvest reported profit after tax of £2.5 million last year and also revealed that it has embarked on a major upgrade of its IT systems to create a more scalable operating model.
‘We are currently engaged in a major project to implement a new, industry leading operating model that will provide us with the latest systems and technology so that it will be fully scalable to meet the future growth of the business,’ the firm said.
‘This strategically key investment programme will enable us to both enhance the services we provide to our clients, including a step change in online functionality, and to deliver ongoing operational efficiencies.’
Elsewhere, the group reported an Ebitda of £17.6 million, a slight decrease on the previous year due to 17% increase in overall staff costs.
Tilney also reported £50.5 million in total borrowings plus a £10 million revolving facility agreement with HSBC, Investec Bank and the Royal Bank of Scotland.