SYDNEY, AUSTRALIA: WT Financial Group Limited (ASX: WTL) has entered a Sale and Purchase Agreement to purchase 100% of the issued capital of Australia’s largest privately-owned monetary adviser group, Synchronised Business Services (Synchron).
The total vendor consideration for the acquisition is as much as $7.96 million, payable over two-years in a mixture of money and shares, and topic to various phrases and conditions.
WTL will assume liabilities of circa $3 million and expects to incur transaction and integration prices of between $1-2 million bringing the anticipated total worth of the acquisition to $12-13 million.
The acquisition is extremely synergistic and accretive to earnings. On settlement of the acquisition, which is scheduled to happen this week, the company’s B2B operations will embody Wealth Today; Sentry Group; and Synchron – making WTL the largest independent recommendation community in Australia.
Commenting on the Acquisition WTL CEO, Keith Cullen, said: “The acquisition cements WTL because the largest independent – or non-institutionally-owned, non-product producing monetary adviser community in Australia and establishes the proper scale of operations to allow us to present the critical helps advisers in our modernised industry demand.
It is a extremely synergistic acquisition and is considerably accretive to earnings – the ensuing scale will set the course for future expansion and extra depth in our choices for advisers.
“WTL will profit from Synchron’s line of talented state managers who will add significant worth to the general group structure. We’re delighted too that Synchron founders Don Trapnell and John Prossor will proceed to work inside the business, serving to support the integration with WTL’s existing operational structure, and retention and growth of the existing adviser base”.
Demand for recommendation continues to develop throughout Australia with millennial inheritance from 2020-2040 forecast to attain $3,500bn, with superannuation assets anticipated to double by 2029, and the largest cohort ever to enter age care.
The panorama inside the monetary recommendation sector has a strong outlook, and the synergies created from the acquisition place us for additional growth.
“Thanks to the Acquisition structure, the Synchron founders will maintain funding publicity to Synchron by holding shares in WTL as we proceed to advance as a chief inside the Australian monetary recommendation sector.”
Commenting on the Acquisition Synchron Founder Don Trapnell, said: “Selling Synchron into WTL represents the subsequent stage of growth for our company. With WTL’s focus on outcomes for its advisers, and its strong strategic direction, the Synchron enterprise will profit from integration into the WTL enterprise – with advisers from every of the cohorts benefiting from a broader base of personnel and programs to assist support and develop their businesses.
Both myself and John Prossor are excited at becoming shareholders of WTL and we each look ahead to contributing to the expanded group operations and to creating additional worth for all WTL shareholders”.
www.wtfglimited.com