TEAM has agreed an ‘amicable cancellation’ of proposed Isle of Man Thornton Associates acquisition in an update statement on 27 December.
In June 2023, TEAM announced the acquisition subject to regulatory approval of financial planning business, Thornton for consideration of up to £2.5m.
“Since then, Thornton's management team has decided to remain independent and TEAM has agreed to an amicable cancellation of the proposed acquisition”, the statement said.
The statement in June had said that Thornton was an Isle of Man based financial planning business with assets under advice of £121m and approximately 180 client groups, typically high-net-worth couples and families.
The deal would have allowed TEAM to expand its operation across the Crown Dependencies, and it had intended to integrate Thornton into its financial planning activities, moving towards one operating model and brand.
On completion of the acquisition, an initial consideration of £900,000 was payable in cash, plus an amount equal to the net assets of Thornton of £250,000 less regulatory capital of £50,000.
In addition, a deferred consideration of up to £1.4m was to be payable, half in new TEAM shares and half in cash. The deferred consideration was to be payable in two instalments of up to £700,000, dependent upon the revenue generated by Thornton in the 24 months following completion.
The acquisition was subject to approval by the Isle of Man Financial Services Commission and had been expected to complete in Autumn 2023.
