Saltus has paid up to £37.75m to acquire Tavistock’s financial advice businesses, Tavistock Partners Limited and Tavistock Partners (UK) Limited, including the Abacus and Duchy brands.

The deal is subject to approval from the regulator.

The transaction will add £2.4bn of assets under advice, more than 140 advisers and staff of 95 to Saltus. The new combined business will have assets under advice and management of more than £7bn and more than 300 staff.

The business will continue to be managed by Mal Harper, existing managing director of Abacus Associates Financial Services, who will report to Saltus managing partner Jon Macintosh. It will operate as a discrete business unit, complementing Saltus’s existing business units.

The deal is scheduled to complete in the autumn following regulatory and Tavistock shareholder approval.

Saltus said the business complements its existing activities, a client-facing Financial Planning business, and the Saltus Partnership Programme, which provides services to entrepreneurial third party financial advisers

Saltus managing partner Jon Macintosh said: “We are impressed by the record of growth Mal has achieved and the quality of care he and his colleagues provide to their clients. There’s a strong strategic case for this deal and the complementary nature of our two businesses will ensure that 1+1=3.”

He said that Abacus is already an important client for Saltus as the firm has been looking after some of Abacus clients’ investments for some time. 

Mr Macintosh said: “We have been helping to turn around the performance of their in-house investment management proposition and we have got to know each other well.  The entrepreneurial attitude, track record of putting clients first and wider culture at Abacus fit well with our own.” 

Brian Raven, Tavistock’s chief executive said: “We have worked with Mal and his businesses since 2014, so it was important for us to find the best home for him, his advisers and his staff. We believe that is Saltus. Our two businesses may now be moving in different directions, but we wish Mal and his team all the very best for the future.”

Mal Harper, managing director of Abacus Associates Financial Services, said “Abacus and our associated operations fit neatly into the Saltus mould and will do much to extend the company’s footprint. There is plenty more scope for development and investment to come across the entirety of the business and there is much to be gained from applying Saltus technology across our activities.”

The sale comprises 100% of the issued share capital of Tavistock Partners and Tavistock Estate Planning Services to Saltus for a cash consideration of up to £37.75m. That comprises £10.97m cash, plus a performance related deferred consideration of up to £15.75m, plus £11.03m payable following completion of the deal.