The AIM-listed wealth manager has taken to its share placement pot of £1.9 million to part fund the acquisition of IFA business ISM Solutions.

European Wealth has completed its acquisition of London-based financial advisory firm ISM Solutions.

The £3 million ($4.7 million) total consideration for the acquisition will be funded 50 per cent in cash and 50 per cent in shares. An initial sum of £1.25 million on completion has been paid to ISM in cash and ordinary shares, the wealth manager said in a statement on the London Stock Exchange. 

Of this, the cash element of £625,000 has been funded by part of the £1.9 million net proceeds that European Wealth had raised through a share placement, while the equity element of £625,000 has been satisfied through the issue of 706,214 new ordinary shares.

The balance will be paid approximately over the next year and is contingent on ISM's recurring revenue over this period. The second round of payments for the acquisition would be £875,000 in cash and £875,000 in shares.

“We are committed to offering a full range of wealth management services, and the skills and experience of the team at ISM further strengthens our financial planning capability,” said European Wealth's chairman, John Morton. 

“Their commitment to excellent client service epitomises our own approach and emphasises the common ground we share. Such a natural business fit will enhance the strengths of the European Wealth Group.”

Over the year to 31 March, ISM generated a turnover of £1.1 million and a pre-tax profit of £114,986. As of the end of March, the business had net assets of £29,000.