Investment management firm Rathbone Brothers announced this morning that it is purchasing Speirs & Jeffrey, Scotlands largest independent wealth manager.

The deal amounts to roughly £104m, and the FTSE 250 company will be hoping that a £60m equity raising, coming from a placing of 5 per cent of Rathbone's share capital with institutional investors, will help finance the acquisition.

Founded more than a century ago, Speirs & Jeffrey has funds under management of £6.7bn, with around 8,500 clients on its books.

Read more: Rathbones and Tilney owner Permira sniff around Speirs & Jeffery

The deal comes amid a general trend towards consolidation within the investment industry as rising costs and stricter rules are encouraging companies to merge.

Previous acquisition attempts by Rathbone Brothers have not been so successful, such as the potential takeover of Smith & Williamson which collapsed last year after the investment management company decided against purchasing the accountancy firm for £600m at a very late stage in the talks.

Read more: Morrisons earnings preview: Retailer faces uphill battle

Philip Howell, the chief executive of Rathbone Brothers, said: "Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders."