IFG Group has entered into conditional agreement to purchase British financial services group, Santhouse Whittington for an initial consideration of £1.8 million sterling (£2.02 million). It has also raised £2.6 million, net of expenses, through a share placing and open offer to its shareholders. The small financial services company said yesterday that it had agreed to pay up to a further £1.5 million a year, depending on the pre-tax profits of Santhouse Whittington, in each of the three years to the end of October 2000. A final payment will be based on the average annual profits of the four years up to 2001 and will be paid in January 2002.
The directors have stated that they believe the maximum total consideration is unlikely to exceed £10 million sterling, which will be payable to Mr David Whittington and Mrs Jane Whittington if certain profit targets are achieved.
IFG chief executive, Mr Richard Hayes said the acquisition should yield considerable benefits for the company and would particularly strengthen its financial services performance in the British market.
Santhouse Whittington is a business trading and actuarial company which employs eight people. It provides actuarial and trustee services, mainly to small self-administered pension schemes together with an associated financial services business. It currently provides its services to over 900 schemes.
Mr Hayes said the acquisition was in line with IFG's strategy to focus on building a recurring income for the group. It also fitted in with its existing British operations, based at St Ives in East Anglia.
Meanwhile, the new shares have been place with nine institutions, improving the company's shareholder mix. The company said its directors have given commitments not to take up any of their entitlements under the open offer. The directors currently hold 31.7 per cent of the current ordinary share capital in issue.
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