Easton Investments has agreed to buy all of the issued shares in The SMSF Expert (which stands for self managed super funds).
The Australian firm offers dealer services such as compliance, training, technical support and para planning to accountants based in Australia. The business operates under a subscription-based model.
Easton managing director Greg Hayes said: “We regard the SMSF Expert as a highly complementary business to our strategy of providing support services to a converging accounting and wealth channel.”
The deal, expected to close on 2 October 2018, includes an upfront cash consideration of $329,000.
The transaction also includes a deferred cash payment, which will be payable 12 months later based on the achievement of a minimum revenue level.
The SMSF Expert managing director Peter Johnson will continue to serve the business in a consulting capacity following the acquisition.
Hayes termed the deal as an “excellent strategic fit”, while adding that it is “relatively small”.
“The current subscription revenue run rate of the business is approximately $350,000. Services provided by the SMSF Expert are entirely consistent with services currently provided by Merit Wealth, a wholly owned subsidiary of Easton. As a result an attractive contribution to earnings is anticipated as we will immediately integrate the back offices,” Hayes noted.