Nucleus Financial Platforms and Curtis Banks Group have reached an agreement under which the former will acquire the latter in an all-cash deal worth around £242m.

Curtis Banks is a UK-based provider of self-invested personal pensions (SIPPs) and small self-administered schemes (SSASs).

Nucleus with its platforms enables financial advisers in managing their clients’ savings and investments.

The deal is expected to create a major retirement-focused adviser platform with nearly £80bn of assets under administration.

Nucleus stated that the combination of Curtis Banks’ SIPP and SSAS product offering with its own position in the UK platform market will create a comprehensive proposition to help financial advisers and their customers across the complete wealth spectrum. 

Advisers, who are presently served by Curtis Banks, are also expected to gain by accessing a wider suite of platform services available within the existing offering of Nucleus.

Nucleus Group CEO Richard Rowney said: “Our ambition remains to create the UK’s leading platform, exclusively for financial advisers to help them make retirement more rewarding for their customers.

“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.”

As per the terms of the deal, Nucleus will offer Curtis Banks’ shareholders 350p per share. This represents a premium of 32.1% to the closing price before the start of the offer period.

Curtis Banks’ board has recommended unanimously that the company’s shareholders vote in favour of the deal. Besides, the transaction has the backing of the company’s founding shareholders and others, who collectively hold nearly 49% stake.

Curtis Banks executive chairman David Barral said: “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.”

The acquisition, which is subject to approval by Curtis Banks’ shareholders and regulatory approvals, is expected to close in Q2 2023.