WT Financial Group (ASX:WTL) has entered a sale and purchase agreement (SPA) to acquire financial advice network Millennium3 Financial Services (M3) from Insignia Financial (ASX:IFL) for $2.01 million.
The settlement of the acquisition is scheduled to occur by mid-December 2023.
The M3 network includes more than 140 wealth and personal risk insurance advisors operating in more than 75 privately owned practices across the country. According to WT Financial, it’s one of Australia’s most established networks of financial advice professionals, with its origins tracing back over 30 years.
WT will pay the $2.01 million fee in cash to acquire M3 on a debt-free, cash-free basis, with the final purchase price adjusted at completion to reflect any retained working capital.
Based on its modelling, once fully integrated into its operations, WT Financial expects the acquisition to contribute more than $50 million of revenue, roughly $4.5 million of gross profit, and more than $500,000 in net profit before tax (NPBT) to the group on an annualised basis.
On completion, the M3 network will add circa $5 billion in funds under administration (FuA) and more than $150 million of in-force risk insurance premium, bringing WTL’s FuA to around $23 billion and in-force premium to circa $470 million.
WT Financial CEO Keith Cullen says the acquisition is ‘highly synergistic’ and accretive to earnings.
“WTL presents as an ideal home for M3 advisors — one where we believe they can and will flourish.
“WTL presents as an ideal home for M3 advisors”
We’re delighted at the opportunity to retain M3’s talented frontline support staff and regional managers, who we believe will add significant value to our group. We’re delighted too that outgoing M3 CEO Helen Blackford has agreed to remain for a transition period to support the integration of M3 into WTL’s operational structure.”
Cullen adds that M3 advisors will benefit from the acquirer’s advisor education and training and access to its innovative consumer education, client recruitment, client retention and digital marketing expertise and assets.
Write to Adam Orlando at Mining.com.au
