With offices in Swindon and Manchester, Caerus has over 300 advisers who are responsible for more than £4 billion of client assets. It will complement Intrinsic, which currently has 3300 advisers.
The acquisition is conditional upon agreement from Caerus shareholders and regulatory approval. It is expected to complete in Q2 2017. The Caerus board have unanimously opted to accept the offer with regards to their own holdings and have recommended the offer to other shareholders.
The acquisition demonstrates Old Mutual Wealth’s commitment to become the UK’s leading wealth manager and complements its existing controlled distribution footprint in the UK. This includes Intrinsic and Old Mutual Wealth Private Client Advisers, the branded national adviser firm established in 2015.
A further update will be provided at Old Mutual Plc’s preliminary results 2016.
Andy Thompson, CEO of Intrinsic, comments: “This is an exciting opportunity for Intrinsic and Old Mutual Wealth to grow its distribution capability. We believe Caerus is a good fit for Intrinsic in terms of the business culture and the profile of its advisers and clients. Along with all my colleagues at Intrinsic, I’m excited to have the opportunity to work with Caerus staff and advisers, subject to the offer receiving shareholder and regulatory approval.”
Keith Carby, CEO and Chairman of Caerus adds: “Almost 90% of shares are held by people who work in the business. Their acceptance of the offer clearly demonstrates that it is in their best long-term interests, and the long-term interests of the business.”
“The transaction provides both a very good return on investment, as well as enhancing prospects for the future for all concerned, with Old Mutual Wealth undoubtedly becoming a leading force in UK personal financial services.”