- WT Financial Group (WTL) announces its acquisition of Australia’s largest privately owned financial adviser group, Synchronised Business Services (Synchron)
- The deal sees WT Financial’s B2B operations comprise Wealth Today, Sentry Group and Synchron, which WT Financial says make it the largest non-product-producing independent financial advice network in Australia
- Total consideration payable to the vendors of Synchron is $7.95 million in a combination of cash and shares across two years
- WTL shares up 13.6 per cent to 10 cents
WT Financial Group (WTL) has announced its acquisition of Australia’s largest privately owned financial adviser group, Synchronised Business Services (Synchron).
The deal will see WT Financial’s B2B operations comprise Wealth Today, Sentry Group and Synchron, which WT Financial said makes it the largest non-product-producing independent financial advice network in Australia.
CEO Keith Cullen said the acquisition was “highly synergistic and significantly accretive to earnings”.
WT Financial has provided EBITDA and net profit guidance for FY2023 of $7 million and $4 million, respectively.
“The landscape within the financial advice sector has a strong outlook, and the synergies created from the acquisition position us for further growth,” he said.
“Demand for advice continues to grow across Australia with millennial inheritance from 2020-2040 forecast to reach $3,500 billion, with superannuation assets expected to double by 2029.”
The total consideration payable to the vendors of Synchron is $7.95 million in a combination of cash and shares across two years.
WT Financial recently closed out a $3 million capital raise that will help fund the acquisition.
It also has and can draw on a secured corporate debt facility for up to $6.7 million with Altor Credit Partners, a subsidiary of Altor Capital.
WTL shares finished the day’s trading session 13.6 per cent higher at 10 cents.