Friends Provident Distribution Holdings, a wholly-owned subsidiary of Friends Provident, has agreed to acquire two UK financial intermediary businesses, Sesame Group and Pantheon Financial.
Sesame Group is a provider of support services to financial advisers in the UK, including regulatory compliance, training, research and technology. It has a portfolio of more than 7,500 registered individuals and distributes a wide range of investment, protection, mortgage and general insurance products.
Meanwhile, Pantheon Financial is an independent financial adviser firm specializing in the high net worth and ultra high net worth markets. The company has grown organically and through successfully integrating four acquisitions. At present, it has over 15,000 clients and is engaged in financial planning, tax and investment advice, scheme administration, and a retail investment unit operating via a call center.
Under the terms of the transactions, Friends Provident will purchase 100% shares of Sesame for a consideration of GBP75 million, while an upfront payment fee of GBP16.8 million in cash will be required to acquire 100% shares of Pantheon Financial. Further payments in relation to the Pantheon deal may also be required spread over the next three years depending on performance.
The acquisitions are in line with Friends Provident’s current strategy to strengthen and develop its relationships with the distribution community by investing in intermediaries with growth prospects and favorable investment returns. This is the first occasion where the group has taken complete control of an intermediary.