Fintech firm FDCTech has reached an agreement to buy a 51% equity interest in AD Advisory Services (ADS) in a stock-for-stock transaction.

Under the terms of the deal, ADS will receive 45,000,000 shares of the company common stock worth $3.15m based on a $0.07 per share price.

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Concurrently, FDCTech will receive 62,450,000 ADS shares representing 51.0% of the current outstanding equity interest as well as the voting power of the ADS common stock.

ADS is an independent specialist dealer group that offers licensing solutions for certain education and compliance-focused financial advisors and accountants.

The acquisition will help FDCTech foray into the Australian wealth management market with access to the Australian Financial Services License (AFSL).

The licence will allow the firm to offer a range of financial services in the country, including financial product advice for several asset classes and deals in financial products with retail and wholesale clients.

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FDCTech co-founder and CEO Mitchell Eaglstein said: “We are pleased to achieve this major milestone for the Company and our shareholders.

“The successful new direction will create new opportunities for the company through cutting-edge digital financial tools that we will implement through our software development capabilities and ADS’ deep knowledge of the Australian wealth management industry.”

Commenting on the deal, AD Advisory Services CEO Jonathan Thomas said: “We have built our business around our clients by transforming their financial well-being through our highly educated and compliant focused financial advisors.

“As we merge with FDCTech, we will forge a digital wealth management company to reduce the cost to serve clients while providing comprehensive financial planning advice.”