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Kelly Partners buys an accounting firm in Melbourne CBD

Finance
ASX:KPG      MCAP $297.9M
01 October 2019 22:20 (AEST)

Kelly Partners Group announced today it will acquire a Melbourne-based accounting firm.

Kelly Partners is a chartered accounting network that aims to provide a better service to private clients and businesses, and their owners and families.

It has 21 operating businesses in Sydney, Melbourne, Hong Kong and Aukland.

The company believes the acquisition will contribute between $2 million and $2.5 million in annual recurring revenue and approximately $500,000 of earnings before interest, tax, depreciation and amortisation.

The acquired firm will relocate to Kelly Partners’ existing office at 333 Collins Street, Melbourne.

An exclusive agreement has also been signed to refer accounting and wealth management business to Kelly Partners.

Kelly Partners CEO Brett Kelly states the acquisition confirms the attractiveness of what it offers to owners of progressive accounting firms.

“It is a strong move forward in the group’s mission to provide a growing network and service offering to clients as Kelly Partners expands outside of Sydney to duplicate its success in Sydney, to Melbourne,” he said.

“The group’s proprietary systems and processes are expected to deliver strong benefits to private businesses and their owners located in Victoria,” he added.

The acquired firm is more than 25 years old and holds a leading position in the Melbourne CBD for accounting and taxation services to small and medium businesses, community groups and individuals.

Kelly Partners is expecting the acquisition to bring 500 new clients, which will bring its total to 7500 clients to the firm.

“The Melbourne office will also provide a further growth avenue for the group’s complementary services businesses including Taxation Consulting, Private Wealth, Finance, Corporate Advisory and the Investment Office,” Brett said.

This is the company’s sixth acquisition since its Initial Public Offering in June 2017. Kelly Partners says it’s in discussions with other firms.

The company expects the acquisition to be completed by November 1 2019.

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