LONDON (ShareCast) - A subsidiary of Brooks Macdonald, an AIM-listed wealth management group, has acquired DPZ Capital from its parent company, DPZ Holdings, for an initial consideration of 5.7m pounds.
DPZ is a well-established wealth management business based in Jersey, which was founded in 2007.
The firm, which manages a range of investment strategies, at March 31st 2014 had around £430m of funds.
If the full value of the funds under management were to be transferred to Brooks, then the consideration will be £10.8m, excluding net current assets.
The consideration is being satisfied by an immediate cash payment of £3m, along with the issue of new Brooks shares at a price of 1,706.4p each to the value of £2.7m.
A further cash payment of £2.4m will be paid in October this year. The total £8.1m represents 75% of the total consideration, with the final installment due in March 2016.
Chris Macdonald, Chief Executive of Brooks Macdonald Group, said: "This is a very exciting acquisition for the group in line with our strategy to expand our international division based in Jersey. DPZ is a high quality asset management business that has strong investment management and cultural synergies with the group.
"As well as adding scale to our international business DPZ bring a highly talented investment management team and additional skills to expand our offering."
The entire consideration is being funded by Brooks's internal resources, the firm added.
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