Mattioli Woods acquires HNW adviser in £8.7m deal

SIPP specialist and wealth manager Mattioli Woods has acquired TCF Global Independent Financial Services and its subsidiary, Kudos Independent Financial Services, in a deal worth up to £8.69m.

The deal will be satisfied partly in cash and partly through the issue of 462,572 new ordinary shares of 1p each in Mattioli Woods.

TCF is the holding company of Kudos, an employee benefits and wealth management business based in Aberdeen.

Kudos, which also has offices in Glasgow and London, has 45 staff providing financial planning advice to both high net worth individuals and companies.

Ian Mattioli, CEO of Mattioli Woods, said: "The acquisition of Kudos is an excellent cultural and strategic fit with Mattioli Woods, offering real synergies for both organisations.

"These synergies include the ability to promote additional services to existing and prospective clients of each business. We expect the enlarged Group to capture new business opportunities through our combined introducer networks

"In addition to extending our geographic footprint, the acquisition gives us the ability to offer our core SIPP, property and investment products to Kudos' clients and to offer enhanced employee benefits services to Mattioli Woods' clients and the wider market."

The cash consideration is payable in part on completion and in part over the period of three years following completion, subject to certain earnings and revenue targets being met.

The initial cash consideration is being funded from the group's existing resources and results in a cash outflow at completion of £2.4m, including deal costs and net of estimated cash acquired in Kudos at completion.

Kudos' management team will be retained following the acquisition.