Consideration will be paid in four staged cash amounts.

Arbuthnot Latham has agreed to acquire Renaissance Asset Finance, a UK-based firm that provides finance for a range of specialist assets, for an undisclosed amount.

Consideration will be paid in four staged cash amounts with the first amount being paid upon completion and will equal the net assets of RAF at that time, Arbuthnot Latham said in a statement. On 30 November 2016, RAF's net assets were £1.6 million ($2 million) and its customer assets were £68 million. 

The remaining increments will be paid annually based on the profitability of the business in each of the following three years. The maximum amount payable for the performance-based payments is capped at £6.5 million.

Both consideration and the refinancing of RAF's funding liabilities, which is approximately £66 million, will be satisfied from the group's current cash resources.

For the 12 months ended 30 June 2016, RAF's unaudited accounts showed a profit before tax of £2.4 million with the average gross customer yield being 8.9 per cent.

“Following the transformational deals completed by ABG earlier this year, I am delighted that Arbuthnot Latham, with the support of ABG can further develop its expansion and diversification plans. The acquisition of RAF will fit well alongside our growing private and commercial banking units and I welcome the team from RAF into the group. I look forward to working with them in the future,” commented Ian Henderson, chief executive of Arbuthnot Latham.