Australian financial service firm Diverger has taken a 38% equity stake in wealth management practice McGregor Wealth Management (MWM) through its wholly-owned subsidiary, Diverger Wealth Holdings.

The consideration for the deal consists of an initial payment of $506,855 in cash alongside a deferred consideration of up to $0.56m during the first 18 months, subject to agreed earnings targets.

Sydney-based MWM is licensed through Diverger-owned GPS Wealth. The firm specialises in personalised financial planning, wealth management, and advice services.

These include retirement planning, estate planning, superannuation advice, investment administration and asset protection strategies among other things.

The deal forms part of Diverger’s broader strategy to back multiple practices and offer additional resources that support their next phase of growth.

According to the firm, its strategic intent is to become “market leading provider of services to advisers.”

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“Investment in growing adviser practices enhances the contribution to Diverger’s Wealth Solutions division through increased share of earnings and recurring cash dividends,” it said in a statement.

The latest deal comes a week after a non-binding indicative offer to purchase Centrepoint Alliance (CAF) in a cash and stock deal was turned down by the CAF board.

CAF said that the Diverger’s offer doesn’t “fairly reflects the strategic value of CAF”. However, the firm said it will meet with Diverger to discuss the offer this week and will update the market if needed.

Last month, Savant Wealth Management invested $3m in Sydney-headquartered fintech firm Lumiant, which provides an advice and ​client engagement platform.