Financial services business acquired by City of London Group

A Bilston financial services business has been bought in a deal that could be worth up to £6.4m.

Acorn to Oaks (A2O) will become part of the AIM-listed City of London Group, which is paying £1.4m up front with a further £5m available as an earn-out over the next three years.

A2O specialises in SME and landlord insurance products and will complement the group’s existing Credit Asset Management Limited (CAML) business, helping to grow its lending business.

Michael Goldstein, chief executive of City of London Group, said: “A2O fits perfectly into our sweetspot by focussing on SMEs and having a strong regional network. We are confident that this acquisition will be an important factor in helping to grow the lending side of the business.”

The deal is subject to FCA approval.