Gresham House has agreed a deal to acquire fellow investment fund manager FIM Services for £25 million.

The proposed acquisition, agreed on a cash-free, debt-free basis, would combine the two outfits, both of whom have an established interest in utility-scale solar and battery storage.

Gresham House is to pay an initial consideration of £21 million on completion – comprising £11.2 million in cash and £9.8 million in loan notes – with a further consideration of up to £4 million payable on specific performance targets being met up to two years post-completion. 

It’s not the first time Gresham House has engaged in M&A activity to bolster its footing in the UK’s renewables market. Late last year it acquired Hazel Capital, the investment firm with a strong standing in UK battery storage projects, in a similarly structured deal. 

FIM announced that it was taking aim at the UK’s secondary solar market with a new fund expansion last year before starting 2018 with a double acquisition.

Meanwhile Gresham House also confirmed its intent to raise £15 million through a placing of new shares to finance the transaction.