Wealth manager Mattioli Woods is set to be snapped up by a London-based private equity outfit after waving through a £432m deal to its shareholders today.
In an announcement this morning, the London-listed firm said it had struck an 804p per share deal with Pollen Street Capital in the latest in a frenzy of take-private deals this year.
The wealth management sector has also been through a wave of consolidation over the past 12 months as skittish investors pull cash from funds and money managers hunt for safety in scale.
The deal marks a 34 per cent premium on the closing price of the company on the 7th March, which bosses said presented an “attractive offer for Mattioli Woods Shareholders” and would allow the firm to accelerate its growth.
“The wealth and asset management industry has seen a wave of consolidation activity in recent years reflecting the drive for scale and technology which are seen as pre-requisites for success and Mattioli Woods has participated in this,” the firm said in a statement.
“Pollen Street Capital brings significant financial and strategic resources to accelerate the delivery of Mattioli Woods’ M&A strategy and organic growth plans.”
The board has now recommended the deal to shareholders.
Another deal is likely to unsettle policy makers and the London Stock Exchange after a slew of take-private deals in the opening months of the year.
At least eight firms have plotted moves off the London Stock Exchange in 2024, with retailer Currys’ currently subject to a bidding war and Wincanton heading toward a bumper £762m takeover.
Investment bank Peel Hunt warned earlier this year that the pace of de-equitisation could be “relentless” this year as private buyers pounce on sluggish valuations in London.