Old Mutual Wealth acquires Quilter Cheviot

International banking group Old Mutual has confirmed the acquisition of investment managing firm Quilter Cheviot has been agreed for £585m by its UK retail investment business Old Mutual Wealth.

Old Mutual, which was reported to be in talks with Quilter earlier this month, claimed the acquisition will complement the Wealth business's existing strategy and add financial benefit to the group and its shareholders.

The transaction is expected to meet the group's return on investment target range of 12%-to-15% and generate annual group synergies of £15m by 2017.

The aim is for QC to accelerate OMW’s plan to build a vertically integrated wealth management business with £92bn of funds under management.

Quilter is currently operating margins of 29% and positive revenue margins at 85-90 bps.

Group chief executive of Old Mutual Julian Roberts said: “The acquisition of Quilter Cheviot delivers the final substantive part of our investment programme in the UK toward building a vertically integrated wealth management business of scale in the UK.”

“Quilter Cheviot is a good fit for our business.”