The Aim-listed wealth manager said the acquisition, which has been approved by the FCA, will provide Harwood with a strategic hub in Southampton and enhance the group’s “already established and growing presence along the South Coast.”
An initial payment of £2.4m, plus £1.54m in respect of net cash balances, was paid to AE Insurance Services on completion of the deal. A deferred payment of up to £2.2m will be paid in two tranches over the next 24 months, subject to AE Financial’s performance.
In August 2016, Harwood acquired Wolverhampton-based Network Direct and saw assets under influence increase 81% to £3.8bn for the financial year ending 31st October 2017, up from £2.1bn the previous year. The firm said it made seven acquisitions during this period for a total £2.3m.
Peter Mann, non-executive chairman of Harwood Wealth Management Group, said AE Financial further augments their presence in a “key area” of the UK. He said their strategy will continue to focus on driving growth both organically and through further M&A in the period ahead.
AE Financial will continue to operate as a standalone brand and director David Hayward will also remain with the company.
Hayward said: “I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients.
For the year ended 31 December 2017, AE Financial reported unaudited revenue of £1.3m and profit before tax of £0.5m. The business noted AUM of £130m.
