Tilney Investment Management Services Inc. said Thursday, Sept. 19, it has agreed to buy Smith & Williamson LLP for £625 million ($779.7 million), creating a wealth manager with £45 billion of assets under management.
Smith & Williamson shareholders will receive a combination of cash and shares in the enlarged company.
The combined company, which will be named Tilney Smith & Williamson, will have an enterprise value of about £1.8 billion, revenues of around £500 million and Ebitda of £150 million.
The deal, which is subject to regulatory approvals, is expected to complete in early 2020.
The boards of both companies in a statement said the combined company will “create a unique and differentiated client proposition, covering professional services, financial planning and investment management.”
Tilney CEO Chris Woodhouse said: “This is a transformational deal, which will create a truly unique business, able to support clients from across the wealth spectrum with a comprehensive range of services for both their personal wealth management and business needs.
“Tilney Smith & Williamson will be responsible for over £45 billion of client assets, of which 80% is in discretionary mandates or funds. It will have a significant number of trusted advisers, including approximately 280 investment managers, 260 financial planners and a professional services business with circa 150 partners and directors.”
The board of the combined company will comprise representatives from both firms. Woodhouse will be the CEO of the enlarged group and Tilney Chairman Will Samuel will be chairman of the combined group. Smith & Williamson joint-CEOs Kevin Stopps and David Cobb will join the board.
“The investment management and professional services market is changing rapidly, with the evolution of client needs accelerating,” Stopps and Cobb said in a statement. “The combination of our two businesses creates real scale, broader capabilities and complementary service offerings, enabling the merged group to enhance existing client relationships and win a higher share of new business opportunities. We look forward to working with Tilney’s management to complete the transaction and bring the two companies together.”