On Friday, Count Limited announced it had entered into a binding scheme implementation agreement to acquire the entirety of Diverger’s shares, amounting to 100 per cent, at a price of $45.3 million.
Moments later, Diverger’s major shareholder, HUB24, issued a statement of support for the transaction, noting it will vote in favour of the scheme in the absence of a superior proposal.
In an investor presentation submitted to the ASX, Count outlined the reasoning behind this acquisition, emphasising that one of the notable benefits is a 53 per cent increase in its adviser count.
Specifically, Count currently has 379 financial advisers, while Diverger brings an additional 200 into the fold.
This substantial growth in scale within its wealth division played a pivotal role in the firm’s decision to pursue the acquisition, it said.
In addition to the merger pointing to the emergence of a new player with the potential to compete with industry giants like Insignia and AMP over the long term, once merged, the company will boast $29 billion in funds under management and administration (FUMA), with revenue projections indicating a 40 per cent growth beyond Count’s current figures.
The completion of the acquisition is expected for the first half of calendar year 2024.
In an ASX statement issued on Friday, Count chief executive Hugh Humphrey emphasised the company’s commitment to bringing high-quality, holistic financial advice to more Australians.
“We believe every Australian should be able to access professional accounting and advice services from a trusted source, which in turn gives them the confidence to look ahead.
“Diver has a strong cultural fit with our company and the combination is expected to unlock material benefits for all stakeholders as well as positioning us to lead further consolidation.”
Mr Humphrey said the transaction signifies an important step towards achieving the company’s ambition to be Australia’s leading provider of integrated accounting and wealth services.
In its full-year results released to the ASX in August, Count reported that it added 101 net new advisers during the 2023 financial year, representing a 36 per cent increase to a total of 379.
This total encompassed 264 advisers under Count, with an additional 115 hailing from Affinia Financial Advisers. Count successfully completed its acquisition of Affinia from Australian life insurer TAL in May.
