AZ Next Generation Advisory (AZ NGA), the Australian arm of Azimut, has agreed to purchase the entire capital of Perth-based financial planning practice Wealthwise for A$9.5m.
The terms of the deal includes a share swap of 49% of Wealthwise’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years.
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The remaining 51% of Wealthwise stake will be paid in cash to founding partners in cash over a period of two years.
The transaction is part of AZ NGA’s objective of consolidating high quality Australian financial practices providing wealth management services to retail, HNW and institutional clients in Australia.
The deal, which is not subject to the approval of the local authority, is expected to close in March 2016 upon satisfaction of some conditions precedent provided in the sale and purchase agreement.
Founded by Jamie and Sheila Luxton in 1986, Wealthwise is responsible for $377m of funds under advice and employs 32 staff including 14 financial planners, six para-planners, and nine client service officers.
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By GlobalDataWealthwise offers a range of financial advisory services including investment and asset allocation advice, retirement planning, insurance, strategic financial planning advice, and aged care.
Also, Wealthwise founders have signed long term contracts to ensure business continuity.
Luxton said: "We believe there will be substantially more opportunity to grow the business, but also to broaden the level of services we provide to our clients, and to develop the career paths and future opportunities for our very talented team."
Azimut chairman and CEO Pietro Giuliani said: "In the first two months of 2016 we have managed to consolidate profitable financial practices worth more than A$ 0.5bn led by talented professionals with a long and successful track record."
