Independent Xplan customising provider Enzumo is set to acquire research house Chant West.
In an announcement to the ASX yesterday, the listed fintech and e-learning service provider said it has entered into a conditional share purchase deed to buy Chant West for $9.5 million, including $6.98 million in cash and $2.52 million in shares at $0.28 per share.
The deal is still subject to Enzumo shareholders' approval.
"Chant West's research-driven services in the superannuation and pension markets, combined with Enzumo's expertise in financial technology, will open up fresh opportunities across the combined group's client base, which includes the majority of Australia's wealth management businesses," Chant West said in a statement.
"It has an impressive client base that includes the wealth management businesses of major banks as well as many non-institutional financial planning practices. Many of its clients are also clients of Chant West."
Principal Warren Chant, who will take a seat on the Enzumo board of directors, said the deal would enable the research house to broaden the services it provides to clients.
Mr Chant stressed the importance of continuity for the firm's established clients.
"Nothing will change overnight; this is just the start of a new phase for us and the business we've built up over 18 years. Our clients are loyal, and maintaining those close relationships is paramount to us. The Chant West name, branding and ethos will continue as before, and our clients will continue to deal with the same people they are used to," he said.
"While Chant West will be wholly owned by Enzumo, Andrea West and I will continue to run the business with our senior management team. We have committed to long-term contractual arrangements under the Enzumo umbrella, and we will also have significant equity in Enzumo. As well as me taking a seat on the Enzumo board, Andrea and I will both sit on the company's Executive Committee."
More details of the acquisition, which is subject to Enzumo shareholder approval at the AGM scheduled for 11 December, are contained in the company's announcement to the market.
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