Consort says its shareholders will see a 450% return on initial investment if the offer is accepted and clients will benefit from the combination of continued management independence and strong financial backing.

"The fact that the majority of our shareholders are also clients makes me confident that the offer will be accepted, since they will gain from the acquisition on both counts," says Eric Werner, managing director, Consort.

Investmaster, which is owned by Canadian firm AGF Management, says the acquisition will almost double its turnover and make it the biggest supplier of integrated systems for private client wealth managers in the UK.

Tom Brady, managing director, Investmaster, says: "The obvious opportunities to share a common front office product, as well as leveraging Investmaster's experience in providing managed application services will strengthen both companies."

Under the terms of the deal, Consort will become a separate, independently managed subsidiary of Investmaster. Both firms will continue to maintain their own staff and support their respective products, although Investmaster's front office portfolio management software will be integrated with Consort's middle and back office systems.

Consort has 29 stockbroking and investment management clients including E*Trade, SelfTrade, Evolution Beeson Gregory, Teather & Greenwood and J M Finn. Consort's main products are the 4i family of middle and back office systems as well as OMR, an order management and routing system, and the Connect Crest interface. There are some 70 shareholders in Consort including management, clients and third party investors.

Subject to shareholder approval, the acquisition will be completed before the end of April.