Mattioli Woods buys chunk of Amati Global Investors

Specialist wealth management and employee benefits business Mattioli Woods announced it has acquired 49% of the issued share capital of Amati Global Investors from Amati Global Partners on Tuesday, for a total consideration of £3.33m.

The AIM-traded company confirmed it has also entered into an option agreement with the seller which entitles Mattioli Woods to acquire the remaining 51% of Amati in the two years starting 6 February 2019, for a mixture of cash and Mattioli Woods ordinary shares.

If Mattioli Woods does not exercise the option, the seller has an option to buy the shareholding back for the original consideration paid.

In the year ended 31 December, Amati generated a profit before taxation of £0.49m - before dividends paid to the Seller of £0.12m - on revenues of £1.76m.

At the same time, Amati's net assets were £1.03m.

The consideration comprised a cash consideration of £1.59m - subject to adjustment for the value of Amati's net assets at completion - plus 224,427 new ordinary shares of 1p each in Mattioli Woods, which are valued at £1.74m based on the closing price on 6 February.

Payment of the cash consideration, deal costs and estimated net asset adjustment resulted in a cash outflow at completion of £1.77m.

“Our investment in Amati represents an exciting extension to our existing asset management business and is another important step forward for Mattioli Woods as we continue to expand our operations,” said chief executive Ian Mattioli.

“Amati is a great fit culturally and strategically.”

Mattioli claimed there were few specialist UK fund managers with such a “long and stable heritage”, utilising the combined experience of an investment team with over 50 years' knowledge of UK smaller companies.

“The team's performance has been recognised in a number of awards and ratings.

“I believe this investment will significantly enhance the Group's fund management expertise.”