Financial adviser Edgewater Associates has been acquired by Manx Financial Group for £2 million.

Isle of Man-based financial adviser Edgewater Associates has been acquired by Manx Financial Group for £2 million.

The initial payment will comprise £525,000 in cash and £475,000 in shares. Deferred performance-related payments will be made annually over the next three years bringing the total possible consideration to £1 million in cash and £1 million in Manx Group shares.

Denham Eke, chief executive of the Manx Group says: ‘We have been reviewing quality financial services businesses both on and off the Isle of Man as part of our growth strategy and the acquisition of Edgewater will bring experience and scale to our fledgling wealth business, quality advice to our customers and instant bottom-line benefit to the group.’

David Hathersich-Jones and Stephen Locking will stay on as Edgewater’s executive chairman and managing director respectively.

Hathersich-Jones comments: ‘We have been looking for our next strategic move in order to provide Edgewater with a step change in its opportunities and we believe the Manx Financial Group will prove to be an excellent fit.’

Founded in 1935, AIM-listed Manx Financial Group provides commercial banking services through its subsidiaries Conister Bank and Conister Card Services.

Edgewater employs 15 staff and has a client base of over 5,000 accountants. For the year to December 2009 Edgewater reported a profit of £361,543 on a turnover of £996,722.