Mattioli Woods has acquired 100% of the share capital of Northern Ireland protection, health insurance and employee benefits intermediary Doherty Pension & Investment Consultancy from its shareholders for just over £15m.
The deal is initially £6.78m in cash and £2m in new Mattioli Woods ordinary shares upfront.
Further payments of £1.5m and up to £4.768m will be paid in the two years following completion, dependant on Doherty’s meeting and outperforming forecast earnings.
The group said the deal would extend and scale its existing operations in Northern Ireland, and add investment expertise to its existing discretionary management proposition and experienced advisers to the group’s consultancy team.
The firm also expects the deal will be earnings enhancing in the first full year of ownership. Doherty’s generated revenues of £2.92m with a profit on ordinary activities before tax of £1.45m in its last reporting year.
Doherty’s currently advises approximately 1,320 private clients, including specialist pension advice with combined assets under advice and administration of over £635m.
Michael Wright, group managing director of Mattioli Woods, said: “It is very rare that such a great opportunity to bring one of the largest financial planning businesses in Northern Ireland into the Mattioli Woods Group presents itself.
“In over 30 years of operations, Doherty’s has built a solid and respected reputation, with integrity and professionalism at the heart of its client service.
“It was clear from our initial discussions that Doherty’s is a great fit culturally and strategically, including a focus on long-term client relationships, serving a similar client base to our existing business.
“We are delighted to welcome Terry, Alan, John and their team into the group.”
Terry Lappin, managing director of Doherty’s, added: “We are delighted to be joining the Mattioli Woods group as the synergy between our companies was obvious from our very first discussion.
“This can only improve our client offering and we are looking forward with enthusiasm to what can be achieved.”
