Brewin Dolphin's wealth management business has announced the purchase of Investec Group's wealth management business in the Republic of Ireland for just under £38m.
Following earlier conversations, a stock exchange announcement said the acquisition is set to complete in the second half of the year, subject to regulatory approvals and the net consideration after adjustments for surplus capital is expected to be circa €44m (£38m).
The consideration will be payable in cash and comprise a payment on completion for goodwill of €37.15m, as well as a payment to reflect the value of net tangible assets in the Investec business at that date.
It said the move will create a top three wealth management business in Ireland with assets under management and advice (AuMA) in excess of €4.6bn.
The combined investment team will count 52 staff members covering circa 5,000 client relationships.
Brewin's statement also added the acquisition is of a "growing business in one of Europe's fastest growing economies, with attractive demographics; consistent with Brewin Dolphin's strategy of growth in AUM". It also noted Ireland's "youngest population in Europe".
The statement said the transaction is being structured whereby Brewin Dolphin (Ireland) will acquire the business with the investment team and only the necessary support staff required on "an ongoing and combined basis to manage the expanded business".
This will deliver "cost synergy benefits from completion and minimise integration risk". The acquired business is expected to generate a pre-tax profit contribution of circa €4.5m in the year to 31 March 2019.
David Nicol, chief executive at Brewins, commented: "This acquisition, which is consistent with our strategy of growth in assets under management, provides us with an exciting opportunity to strengthen substantially our existing presence in the Republic of Ireland, one of Europe's fastest growing economies.
"We will also be in a stronger position to benefit from the country's growing demand for discretionary and advice-led services, supported by favourable demographics, with the country having the youngest population in Europe.
"Our businesses are highly compatible in terms of culture, values, investment philosophy and client-centric approach, which combined with our established platform, will enable us to meet more effectively the growing demand for wealth management services in both the UK and the Republic of Ireland."
The Dublin-headquarted Investec business manages and administers €2.9bn in client funds.
Brewin Dolphin's total funds as at 31 March 2019 is expected to increase to £44.8bn on a pro-forma basis.