Blackpool stocks firm bought for almost Â£80m
A long-standing Blackpool stockbroker has been taken over in a deal which could be worth almost Â£80m.
Hargreave Hale, which has its offices at the Whitehills business park, has been acquired by Cannacord.
It said the existing management and investment team at Hargreave Hale will continue to have a significant role and help drive the growth of the investment and wealth management business.
Hargreave Hale was founded in Blackpool in 1897 and has maintained its family business values of tailored investment for its clients.
Last June it moved into its new 21,000sqft building and took on more than 14 new staff. It has nine offices including in Lancaster and London.
For the twelve month period ended March 31, 2017, Hargreave Hale recorded total revenue of Â£48m.
It has in Â£8bn in assets under administration, management and management contract.
The deal is for an initial Â£52m with another contingent sum of up to Â£27.5m to be paid over a period of up to three years, subject to the achievement of certain performance targets.
Dan Daviau, president and chief executive of Canaccord Genuity Group, which is based in Toronto, said: “We view this transaction as a significant development in our long-term strategy of transforming our business mix to grow contributions from our global wealth management businesses, and one that will deliver enhanced value for our clients and our shareholders.
“I have been extremely impressed by the quality and calibre of our new partners at Hargreave Hale, whose breadth and depth of talent and expertise will be available to our clients.
"Together, as one of the leading UK wealth management businesses, we will be particularly well placed to respond to the ever-challenging wealth management environment including an increasingly demanding and more discerning client base.”
Giles Hargreave, chairman of Hargreave Hale said: “With its similar business model, shared culture and common values, Canaccord Genuity Wealth Management in the UK represents the ideal partner to continue our successful growth and development.
"Along with our senior management team, I look forward to working with our new colleagues as we continue to deliver excellent investment and wealth management services for our clients.”