The deal, completed 30 April, is worth a maximum of £4.1m and brings in £400m of funds under management, taking AFH’s total FUM to £1.7bn.
The amount paid is dependent on IFS’ performance during the next 30 months, with an initial payment £450,000 having already been made.
There is potential for a further £3.65m in deferred payments, half in cash and half in consideration shares – the latter of which will be issued in three instalments over the next 32 months.
AFH also gave a £500,000 estimate of restructuring and integration costs during the next financial year.
“Another key milestone”
The purchase represents AFH’s tenth acquisition since listing on the London Stock Exchange’s Alternative Investments Market in June 2014.
“Today’s acquisition signifies another key milestone as both our largest to date and our first of a national firm,” said Alan Hudson, AFH chief executive.
“IFS represents a significant paper-based transaction with protection for existing investors against excessive dilution and provides excellent geographical synergy to the company’s current advisers.”