FINANCIAL services firm Moneygate has secured its latest acquisition in Yorkshire as the Tyneside firm’s ambitious growth drive continues to gather momentum.
The South Tyneside-based company has announced the acquisition of Sheffield-based IFA Results Financial following its sortie into the City of London earlier this month.
This second deal in the space of a few weeks increases its number of advisers by over 10% to around 120 and increases its funds under management by £250m. And with another major deal imminent the company is on track to achieve its ambitious growth targets.
Results Financial, which has a presence across South Yorkshire, Derbyshire, Nottinghamshire and Bedfordshire, was founded in 1998 by its current managing director Mike Bell, who has 34 years experience in the financial advice sector.
He will now take up a divisional director role within Moneygate.
The purchase of Results Financial for an undisclosed sum demonstrates that Moneygate is continuing to widen its operation through the acquisition of firms across the UK.
Earlier this month Moneygate landed its biggest deal to date with the acquisition of City-based IFA business Equus Independent Financial Management. Equus looks after the affairs of more than 10,000 high-net-worth individuals and has annual revenues of around £5m.
Results Financial brings with it a current turnover of £1.6m and a team of 16 advisers. This latest deal will take Moneygate’s annual turnover to almost £14m and leaves it well-placed to grow to its target of over £35m by 2015.
Moneygate chief executive Lee Hartley said: “Results Financial is a sound IFA business that we believe will benefit hugely from this partnership.
“The implementation of our marketing and technology platform will hopefully ensure that the business operates more efficiently and profitably.
“This deal has been in the pipeline for some time and management on both sides have worked tirelessly to make it happen while not compromising normal business. We are delighted to have finally completed it.”
Bell, of Results Financial, said: “This represents a great move for us and will enable the company to quickly adopt a business model that will benefit everyone. I’m entirely confident that this is the right move for us at the right time. It also allows us to put an attractive trail book buy-out on the table for our advisers as a reward for their hard work.”
In June last year Moneygate bought Buckinghamshire-based Beacon Asset Management after earlier in the year buying Durham-based Derwent Financial Solutions and Washington-based Expert Money.
Its buying spree was launched with a £3m cash injection from US company MGT Capital Investments. Earlier this year London-based private equity outfit Committed Capital bought out the American firm’s share and invested additional funds for growth.
