Team (AIM:TEAM) has exchanged contracts to acquire Hedley & Company Stockbrokers for total consideration of £3m, payable in cash and new TEAM shares and subject to adjustment.
The wealth, asset management and complementary financial services group will fold Hedley & Co into its wholly-owned subsidiary WH Ireland Group immediately after completion.
For the year to 31 August 2025, Hedley & Co reported audited revenue of approximately £2.1m, pre-tax profit of £0.60m and net assets of £0.77m.
Completion is conditional on regulatory approval from the Financial Conduct Authority, with a long-stop date of 31 March 2027.
Of the £3m total, £1.5m is payable at completion, split between £1m in cash and £500,000 in new TEAM shares priced against the prevailing 10-day volume-weighted average price.
The remaining £1.5m is deferred: £500,000 cash and £250,000 in shares 11 months after completion, and the same again at 23 months, with the cash portions adjustable up or down against revenue targets so that total deferred consideration falls between £1.25m and £1.675m.
A further additional contingent consideration of up to £2m may become payable depending on EBITDA performance over the three years following completion, and vendors receiving TEAM shares will be locked in for three years from issuance.
TEAM said the deal extends its UK presence, particularly in the North West, adding experienced staff and long-standing client relationships, and that it expects Hedley & Co to accelerate the group's move toward sustained month-on-month profitability.
TEAM reported first-half revenue of £6.9m, up 18% on the prior year, alongside a pre-tax loss of £1.84m, and has targeted consistent monthly cash profitability around the end of this year or in the first quarter of next; the group's assets under influence and management stood at approximately £2.6bn at its latest AGM update, having grown through the acquisitions of WH Ireland Group and EPIC Funds Services Guernsey.
"Hedley & Co is a consistently profitable and extremely well-managed business, with a strong record of robust financial management, excellent client outcomes and well-established compliance processes and procedures," said Mark Clubb, TEAM's executive chairman, adding that these are "exactly the qualities we look for in businesses joining TEAM."