The deal follows Generali Worldwide Insurance Company’s decision to scale back its private client operation in London and focus on its international clients serviced from its operations in Guernsey.
Led by investment directors Alan Arscott and David Barber, Generali Portfolio Management generates annual revenue of around £1.9m.
The initial consideration of the acquisition will be up to £1.1m in cash, with up to £1m additional deferred consideration payable in stages over the 24 months after completion. The transaction is expected to be EPS enhancing in the first full year.
Arscott said: “Ashcourt Rowan is the ideal home, being a firm believer in the value of strong client relationship management backed by high quality excellence in its investment research capabilities and operational infrastructure. We are confident that we have found the right home for our clients.”
Jonathan Polin, Ashcourt Rowan’s group chief executive officer, said: “We are pleased to welcome Alan and David, their clients and their colleagues in a move that will benefit everyone. We aim to be attractive for investment managers and financial planners seeking a supportive and forward-looking home for their clients and their business.”
Last month, Ashcourt Rowan reported a £2.5m loss for the year, attributed to a change in its management programme, restructuring costs and accelerated depreciation of legacy systems being decommissioned.