“We have made considerable progress in the execution of our stated strategy this year,” said [DATA OML:Old Mutual plc] group chief executive, Julian Roberts.
“The acquisition of Quilter Cheviot delivers the final part of our investment programme in the UK toward building a vertically integrated wealth management business of scale. The acquisition is funded from part of the proceeds of the recent disposals in Europe and the US IPO.”
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The acquisition of the UK-based company by Old Mutual Wealth, for a consideration of up to 585 million pounds, is expected to add a strong discretionary investment management capability to the company.
This would then accelerate Old Mutual Wealth’s strategy to build a vertically integrated wealth management business with 92 billion pounds of funds under management (FUM).
Old Mutual Wealth chief executive, Paul Feeney said, “I’m delighted that we’ve been able to acquire a business of the quality of Quilter Cheviot. [It] fills a significant gap in our business, allowing us to serve better the affluent and HNW segments.”
“We believe this acquisition confirms our position as one of the leading wealth management businesses in the UK, well placed to benefit from the current transformation in this market,” he said.
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The board of Old Mutual further stated that the transaction is expected to generate annual group synergies of 15 million pounds by 2017 and that the deal would extend solution and investment service offerings to clients of both Old Mutual Wealth and Quilter Cheviot.
“This is an exciting development for our business, our clients and our intermediary partners as we become part of Old Mutual Wealth, where our services will be complementary to the existing offering,” added Quilter Cheviot CEO, Martin Baines.
“The long term parentage and financial security that the acquisition provides will allow us to continue to do what we do best, manage clients’ money on a bespoke discretionary basis, providing high levels of service to both clients and intermediaries without compromise,” he said.