UK brokers Cenkos and FinnCap agree £43mn tie-up

UK small-cap brokers Cenkos and FinnCap have agreed an all-share £43mn merger.

The combined group will have more than 210 retained company clients and will employ more than 230 people in the UK, the companies said on Thursday.

Cenkos had a market value of about £22mn and FinnCap was valued at £21mn at the market close on Wednesday. The combined group will have annual revenues of more than £50mn, with £20mn of cash on its balance sheet.

FinnCap was in talks about a takeover by rival Panmure Gordon, but the deal broke down in November last year.

In a statement on Thursday, the two companies said there were “potentially significant cost synergies from common systems, processes, regulatory overlap and infrastructure”.