Euroz, the parent company of Westoz Funds Management, has agreed to acquire an Australia-based stockbroking and corporate advisory business, Blackswan Equities for an undisclosed sum.
The transaction, which is subject to due diligence between the parties, is expected to be completed by 1 July 2014.
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Under the deal, Key Blackswan staff will be subject to staff retention measures and Euroz will issue 5.2 million shares to acquire 100% of Blackswan.
Following the acquisition, Blackswan will become a wholly owned subsidiary of Euroz and Blackswan’s four directors (Tim Lyons, Tony Kenny, Tim Weir and Tom Loh) will join the Euroz Securities board as executive directors.
Through this deal, Blackswan is planning to nearly double the size of its private client dealing desk and form a significantly stronger distribution platform.
Blackswan currently has $1.4 billion of funds under advice in excess of $1.4 billion.
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By GlobalDataAndrew McKenzie chairman Euroz said: "Blackswan is a fantastic, complementary fit for our business that will provide solid revenue, cost and operational synergies for our combined group. Blackswan expertise in this area will enhance our wealth management capabilities.
"Our established WA market position, research, institutional and ECM strength will provide greater opportunities for all Blackswan clients in the merged group," McKenzie added.
Tim Lyons executive chairman Blackswan said: "Blackswan has a significant high net worth client base with funds under advice in excess of $1.4 billion. We believe the strength of Euroz’s corporate brand will provide significant opportunities to our clients in the future," he said.
