Back in March, WT Financial (WTL) signalled it would become the new wealth giant, with funds under advice in excess of $16 billion, following its acquisition of Synchron.
And on Tuesday it confirmed the substantial financial benefit of the acquisition, revealing that its full-year revenue of $103 million includes a nearly $35 million contribution from Synchron from just three and a half months of the financial year.
This, according to the company’s CEO, Keith Cullen, sets the stage for a “very strong” FY2023 with the benefit of a full-year contribution from the acquisition.
“Importantly, the efficiencies we have gained through the acquisition and integration of both Sentry and Synchron are not only resulting in highly accretive outcomes for shareholders; they are enabling us to continue to expand our critical support and service offerings to advisers as our industry continues to modernise and as consumer demands for advice grows,” Mr Cullen said.
WT Financial acquired Synchron for $7.96 million in March, payable over two years in a combination of cash and WTL shares.
The move followed WT Financial’s acquisition last year of the Sentry Group.
The combined group is now said to boast more than 600 advisers and funds under advice in excess of $16 billion.
At the time, WT Financial’s leadership confirmed that the acquisition will set the course for future expansion and allow for more comprehensive offerings for advisers.
“Thanks to the acquisition structure, the Synchron founders will maintain investment exposure to Synchron by holding shares in WTL as we continue to advance as a leader in the Australian financial advice sector,” Mr Cullen said in March.
He noted that the addition of Synchron’s state manager line would provide significant experience and resources to the broader group to support the company’s advisers across its Wealth Today and Sentry groups.
Also at the time, Mr Cullen announced the role out of the Synchron’s NextGen program with the aim to support the professional development of younger advisers.
“Synchron advisers will benefit from the rollout of WTL’s adviser education and training programs, its comprehensive practice management tools and programs, and its enhanced risk management framework,” he said.
“The landscape within the financial advice sector has a strong outlook, and the synergies created from the Acquisition position us for further growth.”
The middleman ticket clipper. Imagine all the funds that could have gone towards advice practices and even cheaper fees for consumers if the middleman didn’t exist. Providing templates and and aggregating revenue is worth a fraction of the licensee fees advisers pay. Time to do away with the AFSL for advisers!