Investment management and IFA support services group Tatton Asset Management has acquired Verbatim Funds, part of Fintel.
The deal will see Tatton pay a cash consideration of up to £5.8m and add around £650m ($900m, €757m) to its investment management arm’s AuM.
Of the total, £2.8 has already been paid in cash on completion, with the remainder, also in cash, being subject to performance conditions over the next four years.
At the same time, the investment management firm has entered into a long-term strategic distribution partnership with Fintel.
The five-year agreement sets out that Fintel provides access to over 3,800 financial intermediary firms and its 6,000 Defaqto users to grow Tatton’s reach and distribution further.
Expanding IFA reach
Paul Hogarth, Tatton’s chief executive, said the deal “clearly demonstrates the progress we are making in executing on our growth strategy”.
“We have set out a roadmap for growth over the next three years, growing our AuM organically and by acquisition and extending our reach to the IFA community, the lifeblood of our industry, through strategic partnerships.
“This transaction is evidence of that strategy in action and it enhances our proposition to IFAs and their clients further, with the multi-index and multi-asset funds complementing and extending our current fund range.”
Matt Timmins, joint chief executive of Fintel, added: “This long-term partnership further strengthens our fintech and distribution propositions and sees us working collaboratively for the benefit of the intermediary market.
“The deal is the coming together of two businesses completely focused on delivering effective solutions to advisers, helping them access the best technology and fund solutions in the market.
“We operate as a market connector, simplifying and improving retail financial services through technology, people and insights, and this partnership will see us drive collaborative growth and inspire better outcomes for all.’’