Founded in 2000, Caledonia is a Chartered financial planning firm based in Edinburgh. It works with around 150 private clients and has £55m of assets under advice.

Mattioli Woods will pay £960,000 up front for the business and a further £640,000 if performance targets are met two years after completion.

Caledonia's five-strong team will remain with Mattioli Woods following completion of the deal.

This deal comes after Mattioli Woods announced last week it had acquired advice firm Pole Arnold Financial Management for an initial consideration of £4m. This is the third acquisition the firm has made in 2021: it also acquired wealth manager Montagu in February for £2.3m.

Mattioli Woods chief executive Ian Mattioli (pictured) said: "Caledonia is a great fit for us both culturally and operationally, serving a similar client base to that of our existing business.  

"This is an important strategic step for the group, extending the geographic footprint of our wealth management business in Edinburgh."

Gordon and Pauline Forbes, Caledonia's directors, added: "This is a very positive step for everyone associated with Caledonia, especially our clients and employees. Mattioli Woods shares our core values and client centred business ethos and so we are delighted to become part of the Mattioli Woods Group.

"Combining our strengths will allow Caledonia's clients and employees to benefit from the considerable additional resources and support available as part of the group, enabling our team to enhance and expand the bespoke personal service our clients expect from us.  We are very much looking forward to this exciting new phase".