Professional services firm Smith & Williamson – which has offices in Jersey – is to merge with wealth management specialist Tilney.
On completion, the combined business will be named Tilney Smith & Williamson, offering integrated wealth management and professional services focusing on private clients, businesses and charities.
Smith & Williamson shareholders will receive consideration valued at £625m through a combination of cash and shares in the enlarged group. Smith & Williamson management shareholders will roll the majority of their investment into the equity of the enlarged group.
The transaction – which values the merged business at an enterprise value of £1.8bn, and will have revenues of £500m and EBITDA of £150m – is expected to complete in early 2020, subject to regulatory approvals.
According to both businesses, the merged group will benefit from an expanded office network across 36 towns and cities in the UK, Ireland and Channel Islands.
The Chairman of the merged business will be current Tilney Group Chairman Will Samuel, while Tilney's CEO Chris Woodhouse will be Group Chief Executive. Kevin Stopps and David Cobb, joint CEOs of Smith & Williamson, will join the board of the enlarged group on completion.
Chris Woodhouse commented: “Tilney Smith & Williamson will be responsible for over £45bn of client assets, of which 80% is in discretionary mandates or funds. It will have 280 investment managers, 260 financial planners and a professional services business with 150 partners and directors, and will continue to provide clients with services from locations across the UK, Ireland and Channel Islands.”
Tilney was advised on the transaction by Evercore and Freshfields Bruckhaus Deringer. Smith & WIlliamson was advised by Keefe, Bruyette & Woods and Macfarlanes.