Tavistock Investments has terminated its "strategic alliance" with national advice company and network Lighthouse with immediate effect, following Quilter's bid for the latter.
Tavistock announced the end of the agreement, which was established in November last year, in a brief statement to the market today (May 30).
The agreement saw Lighthouse pay £1m for a 5.3 per cent stake in Tavistock, with the two companies agreeing last year to establish an investment management service together.
The business was set to develop and distribute investment products and services under Lighthouse's Luceo brand, including Tavistock’s then newly launched capital protection products.
Speaking at the time Malcolm Streatfield, chief executive of Lighthouse, hailed the deal as "the start of a successful working relationship between Lighthouse and Tavistock".
In its statement Tavistock said the end of the agreement was due to the "indefinite postponement of agreed marketing activities as a consequence of Quilter Plc's takeover of Lighthouse".
Earlier this month Lighthouse shareholders voted in favour of Quilter's £46.2m bid to buy the company, in an acquisition which will see 400 advisers join Quilter's advice arm Intrinsic.
Quilter will pay £42.2m for the deal, with the remainder of the offer sourced from Lighthouse's excess cash on its balance sheet.
rachel.addison@ft.com
