Under the terms of the deal, all John Charcol staff and directors will be making the move to Towergate Financial.
Mortgage Strategy exclusively revealed on Monday that Towergate was looking to buy the brokerage.
John Charcol CEO John Garfield will work closely with Towergate Financial CEO Ian Darby to grow the business alongside his current management team.
Darby was appointed chief executive at Towergate Financial in October 2008.
Darby spent sixteen years at brokerage John Charcol becoming the company’s chairman following the Bradford & Bingley buyout in 2004.
Towergate Financial’s growth strategy is to establish a high net worth mortgage advisory proposition to complement its private client and corporate solutions businesses
Towergate Financial is part of the Towergate Partnership, Europe’s largest independently owned insurance intermediary.
Towergate’s business consists of a number of specialist underwriting agencies and regional brokers providing a wide range of niche and general insurance products to individuals and businesses.
Darby says: “We believe there is an excellent fit between our business and John Charcol. John Charcol has an incredibly strong brand in the mortgage market built over many years, based on top quality advisers and great advice. We jointly have a great opportunity to offer financial planning and insurance solutions to Charcol’s clients and vice versa.”
Garfield says joining forces with the team at Towergate Financial will provide its business and people with excellent opportunities to work with Towergate’s businesses to its mutual benefit and to thrive in what is a very exciting time for the mortgage market.
Peter Cullum, executive chairman of Towergate, says: “This is another great acquisition for Towergate which fits our strategy of brand leadership in our specialist fields.
“We already boast the number one network, software and payment protection propositions in addition to leading high net worth general insurance businesses ranging from aviation to medical practitioners. John Charcol is undoubtedly the leading brand in the high net worth space and is a business which has built a strong reputation for expertise and arranging mortgages for wealthy individuals.
“The combination of these two businesses will form an unrivalled capability in the specialist high net worth market.”
The firm has more than 100 financial planners and advisers and has acquired 11 businesses in the past two years.