UK-listed Merchant Securities, the financial firm providing services including private client work, has purchased GT Independent Financial Advisors, the wealth manager, for an initial consideration of £2 million (around $3.2 million), more than doubling Merchant’s assets under management to £485 million.

The payment will take the form of £1 million in cash, and a further £1 million either in cash or up to 50 per cent in Merchant Securities ordinary shares at the option of the company, it said in a statement yesterday. This may become payable dependent on revenue targets for management fee income.

The deal continues a number of merger and acquisition deals that have taken place throughout the whole spectrum of wealth management firms, including those at the smaller end of the spectrum. For example, last week, Société Générale Private Banking Hambros moved to buy the private client investment management business of Baring Asset Management, based in the UK and Guernsey. Principal Holdings, parent of Principal Investment Management, the wealth management firm in the UK, has acquired the UK discretionary fund management firm, Border Asset Management.

Outlining its strategy, Merchant Securities said its acquisition “is in line with the board’s strategy to grow Merchant Securities’ wealth management offering significantly.” The transaction has been approved by the Financial Services Authority, the UK regulator.

Established in 1986 and based in Marlow, Buckinghamshire, GT provides a range of financial planning services to a client base of approximately 3,300 private clients. Currently, GT has approximately £280 million of assets.

For the year ended 31 May 2010, GT generated revenues of £1.25 million and a profit before taxation of £280,000 and had net assets of £132,000 at that date.