The deal will see Collins Stewart pay an initial consideration of £1m in cash and a deferred consideration of to £6m, through the issue of up to 8,050,089 of its own ordinary shares, based on the performance of Corazon over the next twelve months.
As at 28 February, Corazon managed £382m of assets, almost all of which were discretionary, from its offices in Guernsey and Geneva. At the end of last year Collins Stewart’s Wealth Management Division managed £5.9bn of assets, £1.7bn of which were discretionary.
Collins Stewart chief executive Mark Brown said the transaction is in-line with the firm’s stated strategic objective of growing its Wealth Management Division both organically and through acquisition.
Neil Darke, head of Collins Stewart’s Wealth Management Division, added "I am delighted to welcome Corazon’s clients and staff to Collins Stewart.
“This acquisition complements our existing business and enhances both our resources and assets in our Channel Islands heartland whilst strengthening our presence in Geneva."
