Yellow Brick Road has announced it has entered into a conditional agreement to purchase a privately-owned mortgage manager and originator.
YBR executive chairman Mark Bouris said the acquisition of Resi is another important milestone in the group's strategy to become a leader in the non-bank segment.
Mr Bouris added that Resi will provide YBR with enhanced scale and national presence in its mortgage distribution.
The aggregate consideration agreed to be paid for Resi is $36 million, with $28 million payable in cash at settlement.
The issue on settlement of $5.5 million in fully paid ordinary shares in YBR, at an agreed issue price of $0.70 each, will represent a total of 7,857,144 YBR shares.
Resi has a network of franchises and territories throughout Australia, with a solid growth pipeline, according to today’s ASX statement.
“We welcome the Resi franchisees, management and staff to the YBR group and look forward to leveraging our marketing platforms to significantly increase Resi’s lead flow as part of our combined group,” Mr Bouris said.
“The complementary skills and relative strengths of the YBR, Vow and Resi brands and businesses will combine to provide Resi franchisees, YBR branch licensees and Vow brokers with unparalleled opportunities to build revenues and market position as we progress our strategy to be a leader in the “non-bank” sector,” he said.
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