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Kingswood Acquires Sterling Trust for GBP 17.75m
Monday 29 June 2020

UK-based wealth and investment management group Kingswood Holdings Ltd. (AIM: KWG) has acquired UK-based IFA platform Sterling Trust Financial Consulting Ltd. to expand distribution network, the company said.

The business has been acquired for a cash consideration of GBP 17.75m (USD 21.9m) payable over a three-year period. Kingswood paid GBP 7.25m (USD 8.95m) at closing and the balance will be paid on a deferred basis subject to Sterling Trust meeting pre-agreed asset migration, recurring revenue and EBITDA hurdles over a three-year year period, with the final deferred payment due in June 2023.

An additional deferred payment of maximum GBP 1.775m (USD 2.19m) is payable over the 3-year period subject to achievement of an excess EBITDA target over that period.

The transaction boosts Kingswood's client facing advisory team to 62 people and increasing funds under advice/management to GBP 4.8bn (USD 5.9bn) from over 16,000 active clients in the UK and US.

Sterling Trust provides independent financial advice to individuals and corporates across the UK and currently employs 48 people including 22 IFAs advising/managing GBP 1.2bn (USD 1.48bn) AUA/AUM on behalf of circa 5,000 clients.
Date Published: 29/06/2020