Scotland's largest independent wealth manager Speirs & Jeffrey has agreed a deal to be acquired by London firm Rathbone Brothers.
The board of Rathbones is to acquire the firm, which has funds under management of £6.7 billion and 38 investment professionals, from its shareholders, all of whom are working executive directors of the business. The deal was originally mooted in April.
The initial consideration of £104 million comprises £79m in cash (funded in part by a proposed £60m equity placing) and the issue of a million new Rathbones shares worth £25m.
All of Speirs & Jeffrey's current directors and investment managers will be joining Rathbones, and Speirs & Jeffrey chief executive Russell Crichton will become the head of Rathbones' Scottish business. Rathbones' Glasgow team will combine with Speirs & Jeffrey to consolidate the former's existing Glasgow presence.
The London-based investment firm said the acquisition will let it establish a much stronger presence in Scotland, and will see Glasgow becoming the group's largest office after London . "The transaction will also further enhance Rathbones' position as one of the UK's largest wealth managers with pro-forma funds under management of £44.5bn," it said.
Crichton said: "My colleagues and I have long admired Rathbones, and everything we experienced during our discussions has merely strengthened our conviction that it offers the very best fit for our clients and our people. We are all excited about our partnership with Rathbones and the opportunities this new chapter in our history will provide."
Speirs & Jeffrey chairman Graham Waddell added: "This represents a significant milestone for S&J but undoubtedly the right one for our clients and our people. The fact that our team will remain intact and that our clients will continue to receive the same exacting standards of personal service, whilst benefiting from the wider resources of Rathbones, fills me with great confidence for the future."
Philip Howell, chief executive of Rathbones said: "Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders."
The acquisition is subject to approval by the FCA and is expected to complete in the third quarter.