Mattioli Woods buys Caledonia for up to £1.6m
Mattioli Woods has agreed to buy Caledonia Asset Management for up to £1.6m to expand its wealth management business in Edinburgh.
The company will make an initial payment of £0.86m in cash plus £0.1m of new Mattioli Woods shares based on the average closing price in the 10 days to 15 April. Mattioli Woods will pay a further £0.64m in cash in the following two years depending on profit targets being met.
Caledonia was founded in 2000 and advises about 150 individuals and families on their finances. Clients have more than £55m of assets and Caledonia employs five people who will work for Mattioli Woods.
The business generated pretax profit of £0.18m in the year to the end of December on revenue of £0.45m.
Ian Mattioli, Mattioli Woods' chief executive, said: "Caledonia is a great fit for us both culturally and operationally, serving a similar client base to that of our existing business. This is an important strategic step for the group, extending the geographic footprint of our wealth management business in Edinburgh."
Mattioli Woods shares rose 2.7% to 750p at 08:12 BST.