Fiducian has announced an agreement to acquire a bank-owned financial planning business with over $340 million in funds under advice for approximately $3.5 million.
According to a statement to the ASX, the acquisition of MyState’s advice business is expected to be earnings per share accretive for Fiducian and is planned to complete by 30 June 2019.
The transaction will also see Fiducian and MyState enter into an ongoing referral arrangement that will involve ongoing referrals for the financial planning arm from MyState to Fiducian and home mortgage lending and trustee services from Fiducian to MyState.
“We are excited to consolidate our presence in Tasmania with this acquisition and to work with MyState to ensure that our clients continue to have access to quality financial planning services and, as well, have the benefit of trustee and home lending services from MyState,” said Fiducian head of business development and distribution Jai Singh.
“As part of the acquisition, we are also looking forward to welcoming financial planners and support staff into the Fiducian family, so where possible there is a continuity of service to clients.”
MyState managing director and chief executive Melos Sulicich said it looks forward to working with Fiducian to ensure that the transition for its customers is smooth, simple and straightforward.
“This is a strategic move for the MyState Group which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage,” Mr Sulicich said.
“Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services.”
Fiducian has more than $2.7 billion in funds under advice and 40 practices nationwide.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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