Funds manager Perpetual Ltd
(ASX:PPT) has expanded its private wealth capabilities by acquiring advisory firm Fordham Group.
The acquisition price of around $35 million will be funded through a combination of internal resources and deferred consideration, and is subject to earn outs over 4 years.
Perpetual says as at November 30 2009, Fordham had around $500 million of funds under management and advice.
CEO David Deverall says the Fordham acquisition is highly complementary to the company’s private wealth strategy and service offering and fills a capability gap in its offering to the high net worth advice market as well as strengthening its presence and commitment in Victoria.
Perpetual says the acquisition is expected to be slightly EPS dilutive in the 2010 financial year due to the combination of the timing of the acquisition and the expensing of acquisition and integration costs, and is expected to be EPS accretive in fiscal 2011.
Perpetual earned net profit after tax of $37.75 million in 2009.
