WT Financial Group Limited (ASX: WTL) (WTL, the Company, or the Group) is pleased to announce it has entered a Sale and Purchase Agreement (SPA) to acquire 100% of the issued capital of financial advice network Millennium3 Financial Services Pty Ltd (M3) from Insignia Financial Limited (ASX: IFL) (IFL). Settlement of the acquisition (Acquisition) is scheduled to occur by mid-December 2023 (Completion).
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The M3 network includes more than 140 wealth and personal risk insurance advisers operating in more than 75 privately-owned practices across the country. It is one of Australia’s most established networks of financial advice professionals, with its origins tracing back over 30 years.
WTL will pay $2.01M to acquire M3 on a debt free, cash free basis, with the final purchase price adjusted at Completion to reflect any retained working capital. WTL intends to fund the Acquisition using cash at hand.
The Acquisition is highly synergistic and accretive to earnings. Based on its modelling, once fully integrated into its operations, WTL expects the Acquisition to contribute more than $50M of revenue; circa $4.5M of gross profit; and more than $500k of NPBT to the Group on an annualised basis.
On Completion the M3 network will add circa $5Bn in FuA and more than $150M of in-force risk insurance premium, bringing WTL FuA to circa $23Bn and in-force premium to circa $470M.
The Acquisition further cements WTL as amongst the very largest financial adviser networks in Australia.
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