Rathbones acquires wealth management arm of Investec in £839m deal
Private investment and wealth management firm Rathbones is to acquire the UK investment and wealth management arm of Investec Group in an all-share deal worth £839 million.
Investec sells wealth management arm to Rathbones
Rathbones will issue shares in the company in exchange for the entire share capital of Investec Wealth and Investment (Investec W&I), creating a UK wealth manager with around £100 billion in funds under management.
The combined company will continue to operate as an independent firm under the Rathbones brand with Investec Group acting as a long-term shareholder. Investec W&I’s standalone branding will be phased out following a transition period, Rathbones says.
On completion of the deal, Investec Group will own 41.25% of the enlarged Rathbones Group, with Investec Group’s voting rights limited to 29.9%.
Investec W&I’s anticipated CEO Iain Hooley says: “As a combined business, we will have true scale, an enhanced client proposition, and complementary multi-channel distribution capability.”
Rathbones says the acquisiton will enhance its offering across investment management, financial planning, fund management and banking services, with chair Clive Bannister adding that the firm’s new scale will support its “future growth”.
The company claims the deal will also create value with a target annual run-rate of at least £60 million, driven by cost-savings and higher net interest income.
