Spring FG to purchase Financial Choice

According to a statement on the ASX, Spring FG has entered into an agreement to acquire Financial Choice.

The company has agreed to pay $2 million by way of cash and $500,000 by way of the issue of vendor shares at settlement, which is expected to take place in April.

The settlement is subject to final “company and bank due diligence” by Spring FG. A second, deferred payment of $1.3 million will be paid by Spring FG in October 2017, the statement said.

The acquisition would add $325 million of assets under management. Financial Choice founder and chief executive Russell Medcraft will join Spring FG in an executive capacity post-settlement to assist with the merger of the businesses.

Keith Cullen, Spring FG founder and managing director, said 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," he said.

“We see a significant opportunity to broaden services to this group and unlock value for them and from them.”