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Smith & Williamson and Tilney announce merger
Posted on Friday, 20 September 2019 08:54
Tilney and Smith & Williamson have agreed to combine their businesses in a deal that provides the latter’s shareholders with GBP 625.00 million in consideration.
A tie-up between the two groups creates the UK’s leading integrated wealth management and professional services group, with GBP 45.00 billion in assets.
Under the terms of the transaction, Tilney will pay GBP 625.00 million to Smith & Williamson through a combination of cash and shares in the enlarged group, which is said to be worth around GBP 1.80 billion.
Completion is slated for early 2020 and is still subject to regulatory approvals.
After closing, the new company – to be named Tilney Smith & Williamson – will have annual revenues of around GBP 500.00 million and earnings before interest, taxes, depreciation and amortisation of GBP 150.00 million.
In addition to the investment management side of the group, Tilney is a leader in the financial planning sector, while Smith & Williamson is billed as one of the top ten UK-based accounting firms.
Together, they will have an expanded office network across 36 towns and cities in the UK, Ireland and the Channel Islands.
It was just last month that media reports first picked up on the potential deal between the two London-based businesses, with Tilney confirming the Sunday Times report that it was in talks to acquire Smith & Williamson.
According to Zephyr, the M&A database published by Bureau van Dijk, this deal is the third-largest to target the UK finance and insurance sector announced in 2019 to date.
Of the 1,023 deals signed off in total, the largest involves OneSavings Bank picking up Charter Court Financial Services Group for GBP 731.00 million.
It was followed by Tiger Global Management selling a 2.5 per cent interest in Barclays for GBP 683.00 million in the second biggest deal.
Greensill Capital (UK), World First UK and Finsbury Growth & Income Trust, among others, have also been targeted in the year so far.
© Zephus Ltd