IOOF looks set to add $2.2 billion to its funds under management with the board of its latest acquisition target, Plan B, recommending shareholders accept the 60c a share offer.

The offer price values Plan B at $49.1 million and represents a healthy 33% premium on Plan B’s 45c closing price on July 12, the day before it was made.

IOOF spokesman Melinda Hoffman told insuranceNEWS.com.au the group “has a long-standing strategy to increase distribution aligned to IOOF and this deal is in that line”.

Last year IOOF paid $115 million for wealth adviser DKN Financial after raising its initial bid price from $108 million.

Plan B is a vertically integrated wealth management group with its own in-house investment management platform, funds management and advisory business including insurance. It operates in Australia and New Zealand.

Analysts appear to believe that IOOF’s bid price is adequate but not generous. “The price IOOF has offered is sufficient to win the unanimous support of directors but nothing more,” Investorfirst analyst Stewart Oldfield told insuranceNEWS.com.au.

The deal will see Plan B continue to operate in the market under its own name and maintain its current client relationships.