Cenkos and FinnCap, UK brokers, come to an agreement for a £43 million partnership.

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Two brokers in the UK small-cap market, Cenkos and FinnCap, have decided to merge through an all-share agreement worth £43mn.

According to a statement released on Thursday, the two companies will merge to form a larger group with over 210 retained company clients and a staff of more than 230 individuals in the United Kingdom.

At the end of trading on Wednesday, Cenkos was worth approximately £22 million and FinnCap was valued at £21 million. Together, the merged company will generate over £50 million in yearly revenue and hold £20 million in cash reserves.

FinnCap was discussing the possibility of being acquired by competing company Panmure Gordon, but unfortunately, those negotiations fell through in November of last year.

The two firms announced on Thursday that there may be substantial savings by using shared procedures, regulations, and facilities, thus reducing expenses.