Nucleus is set to buy Curtis Banks Group in a cash deal worth £242 million, taking its assets under administration to £80 billion.
Under the terms of the deal, Nucleus will pay Curtis Bank shareholders 350p per share, representing a 32.1% premium on Curtis Banks’ share price value at the end of November, when the offer period began.
In a statement published on Friday 6 January 2023, Nucleus said its acquisition of the Sipp and SSAS provider will create a “comprehensive proposition” to support advisers and their clients, providing advisers with access to a broader suite of platform services including ISAs, GIAs and onshore and offshore bonds.
Curtis Banks manages £37 billion of assets on behalf of around 79,000 customers and has relationships with over 800 adviser firms and wealth managers.
Nucleus said the board of Curtis Banks has unanimously recommended that shareholders vote in favour of the transaction and that the Curtis Banks directors who hold shares have irrevocably undertaken to Nucleus to do so themselves. The firm said it has already received irrevocable undertakings to vote in favour of the deal from the founding shareholders of Curtis Banks, as well as Oryx International Growth Fund Limited and Odyssean Investment Trust, who in total make up around 49% of Curtis Banks’ issued share capital.
In addition, Nucleus has also received a letter of intent to vote in favour of the deal from Genuity Asset Management.
As part of the deal, David Barral, executive chairman of Curtis Banks, who joined the Curtis Banks board in May 2022, will be entitled to £2 million as part of an incentive arrangement.
Nucleus said the deal is expected to be completed in the second quarter of this year.
Richard Rowney, Group CEO of the Nucleus Group, said he was delighted to announce the acquisition as part of its ongoing ambition to create the UK’s leading platform.
Rowney said: “We’re delighted to be announcing the acquisition of Curtis Banks. We’re already demonstrating the benefits of scale, enabling investment in technology, people, products, price and service. As one of the UK’s largest independent SIPP and SSAS providers, Curtis Banks not only adds further significant scale to our business but will complement our existing expertise and benefit our combined adviser base providing added flexibility and optionality.”
David Barral, executive chairman of Curtis Banks, added: “The Board of Curtis Banks is pleased to be recommending the Nucleus Group’s offer for the company, which represents a significant premium in cash and offers certain value for our shareholders. Curtis Banks recognises Nucleus’ established reputation and strength in the adviser platform market, as well as our shared customer-centric approach and aligned corporate values. The Combined Group’s greater scale, efficient platform, broader product proposition and enhanced ability to invest in technology and service will benefit all stakeholders.”
