Friends Provident snaps up IFA firm

Friends Provident also announced it had agreed to buy top-end IFA firm Pantheon for an upfront fee of £16.8m (€24.5m), with potential for further performance-related payments over the next three years.

The acquisitions form part of Friends Provident’s strategy to “strengthen and develop” its relationship with the distribution community. It is the first time that the insurer has taken complete control of an IFA firm.

Sesame’s 7,500-plus members distribute a wide range of investment, protection, mortgage and general insurance products in the UK market. In November last year, Misys posted an interim operating profit for Sesame of £8m (€11.67m) for the six month period.

Leeds-based Pantheon currently employs 82 staff, including 32 advisers servicing more than 15,000 clients.

Both Sesame and Pantheon will continue to operate as separate entities, retaining their brand, people and offices, Friends Provident said.

It also ruled out any job losses or changes to senior management as a result of the buy outs.

Friends Provident director Ben Gunn said: “We are delighted with the opportunity to acquire these high quality, profitable brands and their talented management teams.

“Friends Provident is committed to maintaining and supporting a healthy intermediate sector which is our primary access to market.

“Consumers should have choice from a stable and efficient adviser community that identifies the best client solutions.”

Patrick Gale, chief executive of Sesame, said: “As a major financial services company, Friends Provident is a logical and natural owner to provide the support for us to drive our future aspirations.”