UK-based life and pensions software outfit Wealth Management Software has acquired Fairs - a supplier of portfolio and commission management applications to IFAs - for £2 million in a mixed stock and cash transaction.
Founded in 1984, Fairs has around 300 clients, most of whom licence the software on an annual basis. Clients include national and regional IFAs, banks, building societies, accountancy practices and solicitors.
In the financial year ended 31 December 2003, Fairs had a turnover of £920,000 and a profit before tax of £189,000, with net assets of £528,525. The two owner directors of Fairs who have been working on a part time basis, are retiring. Gary Sawyer, who has been with the business for nine years, will remain as general manager.
Paul Newton, chairman, WMS says the acquisition broadens the firm's product line and provides a source of recurring revenue. "Fairs has a long history in the IFA market, but has a relatively new product line and will benefit from the increased profile of being part of a public company."