IFG Group has acquired financial services advisers Planlife Advisory Services in a deal which puts a value of at least €2.57 million (£2 million) on the company.

Planlife reported a net deficit on shareholders' funds of £40,714 (€51,696) at the end of June 1999, its latest audited financial statements. The company produced profits before tax and exceptional items of £155,996 for the year on a turnover of £845,016 but exceptional termination payments led to the deficit on shareholders' funds.

IFG will pay for Planlife in cash, shares and share warrants which can be converted into IFG shares over a three-year period. It will make a cash payment of £600,000 and issue 28,000 IFG shares to the vendors. At the last traded price of €1.14, the block of shares was worth €31,920. In addition, the vendors - Mr Thomas Lyne and Mr Joseph Murphy - who will join the board of IFG subsidiary, IFG Quigley, are getting 800,000 share warrants. They can either convert each warrant into an IFG share at any time up to March 31st, 2003, or redeem them for cash on March 31st, 2003, at a price of £1.75 per warrant.

Converted for cash the warrants would be worth £1.4 million in 2003, but they could be worth more if the IFG share price produces a strong performance.

IFG chief executive Mr Richard Hayes said Planlife was acquired to add to the pensions advisory capacity of his group in a growing market.

Founded in 1982, Planlife provides professional advice and services on employee benefits and personal finance matters.