Tavistock Investments PLC (AIM:TAVI) said it is acquiring Precise Protect Limited, a fast-growing insurance and protection business based in Bangor, Northern Ireland, for up to £7mln.
Precise Protect has a network of over 200 advisers working with more than 37,000 UK clients.
The company offers a wide range of products, including life and critical illness cover, private medical insurance, personal injury and income protection.
Several of these products were developed in-house and are unique to Precise Protect.
In the last full financial year, the company reported a pre-tax profit of £1.45mln on turnover of £6.45mln.
Following the deal, the Tavistock group will have more than 400 advisers and other business introducers looking after over 110,000 private clients with estimated assets of over £5bn, as well as 350 corporate and affinity clients with approximately 16,000 employees.
Of the £7mln being paid for Precise Protect, £250,000 is to be settled through the issue of shares. The remaining balance will be paid in cash from the company's existing resources and by drawing down from the acquisition debt facility provided by the Bank of Ireland (LSE:BKIR).
A total of £2.75mln is being paid on completion, while the balance will be met through three annual instalments linked to performance.