InvestAcc Divests Wealth Units for £12M as Director Plans Share Sale

InvestAcc Group is selling its wealth management and representative services divisions for £12 million to focus on specialist pensions administration. The transaction, which includes the sale of Vesta Wealth Limited and InvestAcc Limited, occurs alongside a major shareholder's plan to exit his position in the firm.

"The divestment represents a strategic pivot for InvestAcc to focus on its core specialist pensions administration business," according to a report from Investing.com.

Transaction Details and Valuation

The sale to Edengate Wealth Group Limited is valued at 9.2 times the fiscal year 2025 EBITDA of the units being sold. The deal is subject to regulatory approval from the Financial Conduct Authority, and the companies expect completion by early 2027.

Following the sale, Nick Gardner, the owner of Edengate and a director at the businesses being sold, intends to divest his holdings in InvestAcc. Gardner plans to sell approximately 12.5% of the company's issued share capital, totaling 6,150,911 shares, through an accelerated bookbuild process.

Strategic Focus on Pensions

This divestment changes InvestAcc's operational strategy. By shedding its wealth management and representative services arms, the company aims to simplify its corporate structure to prioritize pensions administration services. This move aligns the firm with industry peers that have moved to simplify their portfolios by exiting non-core advisory or wealth management segments in favor of specialized administrative services.

For InvestAcc, the transaction provides a capital injection of £12 million while reducing the complexity of its service offerings. The departure of Gardner, a significant insider, changes the company's ownership composition as it transitions toward its narrowed operational mandate.