National advice firm Jelf Group has agreed to be taken over by insurance broker Marsh that has valued the company at around £258 million.
Under the terms of the acquisition, which is subject to Financial Conduct Authority approval, Marsh will acquire the entire share capital of Jelf and give each Jelf shareholder 215 pence per share, which values the company at around £258 million.
Jelf, founded in 1989 has 37 offices across UK and provides advice to over 10,000 businesses and individuals on financial planning, employee benefits and insurance.
In August the two companies confirmed they were in ‘early stages’ of discussions over a possible cash deal.
In a statement issued on the London Stock Exchange, the companies said: ‘Jelf and the Marsh group have a strong cultural fit and share the same values that put the client at the centre of both businesses.
‘The companies believe that the combination of the two firms will offer individuals and companies of all sizes market-leading customer service, advice and products.’
Jelf directors have unanimously approved the acquisition and will recommend all its shareholders to vote in favour of the deal.
The deal has been announced ahead of the 16 September deadline Marsh had set to either announce a firm intention to make an offer or say it no longer has plans to do so.
Jelf, which has business lines split across insurance, employee benefits and financial planning, posted a 61% increase in pre-tax profits for the year to 30 September 2014. Acquisitions and restructuring after the retail distribution review lead profits up from £4.6 million to £7.4 million, the firm said.
Revenues for the group’s financial planning arm, however, fell by 7.1% from £7.1 million in 2013 to £6.6 million in 2014.
Alex Always (pictured), chief executive of Jelf Group, said: ‘I am extremely proud of the business that we have built since Jelf was founded in 1989. Every one of our colleagues has contributed to our deserved reputation for developing long-lasting, trusted adviser relationships with our clients.
‘As our clients’ needs have continued to evolve, the Board and executive management team have given much thought about how best we meet their growing expectations. At the same time, we want to ensure that our colleagues are given the greatest opportunities to develop their careers. I am confident that this transaction is great news for our clients and colleagues alike.’