Tavistock Investments PLC (AIM:TAVI) shares are up 9% after the group announced its intention to acquire Alpha Beta Partners (ABP), an asset-management firm based in London and Bath with close to £3 billion in assets under management.
The acquisition marks the latest step in Tavistock's plan to enhance its presence in the UK retail investment market.
Tavistock will make an initial payment of £6 million, with the total acquisition cost potentially reaching £18 million depending on ABP’s financial performance over the next five years.
“Alpha Beta Partners is joining us at the ideal time,” stated Tavistock’s chief executive Brian Raven. “Their strategic plans and partnerships gel perfectly with ours, particularly in terms of how to improve investor services and value. We look forward to an exciting future together."
Tavistock shares are currently swapping for 3.87p with a market capitalisation of £21.7 million.