London-based insurance intermediary Towergate Partnership has purchased Towergate Financial Services, an aggregator of financial advisory businesses, for an undisclosed sum.

TFS, which had bee in administration, said it recently reviewed strategic options and concluded that, given current adverse economic conditions, the scale of its operation was not viable in the short term. The review, which involved independent valuations of the business, also concluded that the best solution for stakeholders was for TFS to move under the TP umbrella.

Both firms have similar names and have worked closely in the past but were separate businesses, a spokesman for Towergate Partnership told WealthBriefing.

Under the acquisition agreement, TFS will become a new division of TP, under chief executive Andy Homer. The business will focus on controlled acquisition growth as the market improves, linking in with the group’s retail general insurance brokers to assist TF advisors in accessing TP customers.

Patrick Snowball is to relinquish his position as chairman and leave the company. “I am sad to be leaving TFS but the time is now right to concentrate on my other business interests. Putting TFS into the TP structure is the logical way forward, given the different market environment we now face,” Mr Snowball said in a statement.

“The original Towergate Financial Services concept - to replicate the Towergate model in the fragmented IFA market - remains as valid as ever but, given current economic conditions, we must scale back the rate of growth. The solution we have announced today safeguards the TFS business and provides the right structure for the future,” said TP chairmanPeter Cullum.

Patrick Snowball established TFS in 2008 to consolidate regional UK IFAs. Since then it has made ten acquisitions and built up a staff of 150.