WT Financial Group Limited (ASX: WTL), a leading financial services company, is excited to announce the signing of a Sale and Purchase Agreement (SPA) to acquire 100% of Millennium3 Financial Services Pty Ltd (M3) from Insignia Financial Limited (ASX: IFL). This strategic acquisition, scheduled for completion by mid-December 2023, marks a significant milestone in WTL's growth and expansion strategy.
Key Highlights of the Acquisition:
- The acquisition includes more than 140 wealth and personal risk insurance advisers across over 75 privately-owned practices nationwide, significantly expanding WTL's reach.
- WTL will acquire M3 for $2.01 million on a debt-free, cash-free basis, with the final purchase price adjusted at completion.
- The acquisition is expected to be highly synergistic and accretive to earnings, contributing over $50 million in revenue and approximately $4.5 million in gross profit annually.
- Post-acquisition, WTL's Funds under Advice (FuA) will increase to approximately $23 billion, and in-force risk insurance premium will reach around $470 million.
Seamless Transition and Enhanced Support: The transition is expected to be smooth, with minimal disruption for M3 advisers and their clients. M3 advisers will gain access to WTL's market-leading education, training, and innovative digital marketing resources. The M3 fee structure aligns closely with WTL's existing models, focusing on practice and adviser growth.
Continued Collaboration with Insignia Financial Limited: WTL maintains a strong working relationship with IFL, with significant FuA on IFL investment platforms and FuM in IFL asset management products. IFL will continue as a cornerstone education partner in WTL’s adviser education and training programs.
Commenting on the Acquisition WTL CEO, Keith Cullen, said:
“The Acquisition represents a significant opportunity to continue to leverage our robust and scalable infrastructure for the benefit of the advice practices we support. WTL presents as an ideal home for M3 advisers - one where we believe they can and will flourish.
We’re delighted at the opportunity to retain M3’s talented frontline support staff and regional managers who we believe will add significant value to our Group. We’re delighted too that outgoing M3 CEO Helen Blackford has agreed to remain for a transition period to support the integration of M3 into WTL’s operational structure”.
Mr. Cullen added:
“The M3 fee structure closely aligns with the structures we operate across our existing cohorts on a net per practice and per adviser basis. Additionally, it includes a variable fee component, aligning our interests in helping practices grow their own revenue and profitability, which is our core focus at a time of unprecedented opportunity for advice professionals and advice network operators alike”.
About us:
WT Financial Group Limited has established itself as amongst the very largest financial adviser networks in Australia. Its wealth management, retirement planning and personal risk insurance advice services are delivered primarily through a group of privately-owned advice practices whose advisers operate as authorised representatives under its Wealth Today, Sentry Advice, Synchron Advice, and (upon Completion) Millennium3 subsidiaries.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
