Spring Financial Group, an Australian financial services company, has agreed to purchase advisory firm Financial Choice, a move that will boost Spring FG’s assets under advice by $325m to about $850m.
Financial Choice provides a range of services, including financial advice, dealing services, SMSF advice and administration services. It has more than 15,000 retail customers.
Under the terms of the deal, Spring FG will pay $2.5m by way of cash and vendor shares at settlement, which is expected to take place in April. The company will also make a second deferred payment of $1.3m in October 2017.
Additionally, Financial Choice founder and CEO Russell Medcraft will join Spring FG’s executive team post-settlement to help with the merger of the business and operations.
The transaction is subject to final company and bank due diligence by Spring FG.
Commenting on the acquisition, Spring Financial Group founder and managing director Keith Cullen said that the acquisition would further broaden the group’s revenue profile and profile of its assets under advice.
“Financial Choice also has a diverse client base with a concentration of around 2,000 high value clients augmented with around 15,000 retail account holders from historical corporate super programs,” Cullen added.