The deal, which was first announced in May, sees Clime fully divest of Madison Financial Group and WealthPortal. The headline purchase price for the acquisition of the group is $2 million and will be paid in the form of convertible loan notes issued by Infocus.
The addition of Madison will see Infocus Wealth Management grow to 200 advisers and more than $16 billion in funds under advice.
In an announcement to the ASX, Clime said: “The company is pleased to advise that the parties have entered into full form binding sale deed to implement the sale and strategic partnership on the terms detailed in that announcement. The parties expect to complete the sale on 28 June 2024.
“The strong cultural alignment enables a smooth transition for advisers with minimal disruption to their business, and strategic partnership opportunities for the parties.
“The divestment also positions the company for profit improvement in FY25, with normalised profits of approximately $500,000 and streamlined operations with a focus on funds management and private wealth.”
When the deal was originally announced, Infocus founder and managing director Darren Steinhardt said the licensee is an “ideal home for the Madison group and we’re looking forward to welcoming the advisers to our fold”.
“Infocus will be a home where the Madison group can integrate into a strong community, benefit from an outstanding culture, and take advantage of industry leading hands-on support and infrastructure to grow their advice businesses,” Steinhardt said.
“Beyond the transaction, we are keen to build a strategic relationship with Clime, one that delivers meaningful value for all parties.”
Clime chief executive Annick Donat said: “Infocus will be excellent custodians of the Madison business. It is clear there is strong cultural and strategic alignment between the firms, and they have an outstanding track record of supporting financial advisers.
“Clime will work closely with Infocus to ensure a seamless transition, including the use of the group’s dealer-to-dealer services, and longer term, we will collaborate to drive mutual success and unlock further revenue opportunities.”
