Australian financial services firm Fiducian Group has agreed to buy the retail financial planning unit of MyState Tasmania in a deal worth $3.5m.
The transaction, expected to close by the end of this month, adds $340m of funds under advice to Fiducian’s books.
MyState CEO and managing director Melos Sulicich said: “This is a strategic move for the MyState Group which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage.”
Fiducian believes that the deal will be accretive to its earnings per share.
Furthermore, the two parties struck an ongoing referral agreement.
The agreement supports referrals for “Financial Planning from MyState to Fiducian and Home Mortgage Lending and Trustee services from Fiducian to MyState”.
Fiducian head of business development and distribution Jai Singh said: “We are excited to consolidate our presence in Tasmania with this acquisition and to work with MyState to ensure that our clients continue to have access to quality financial planning services and as well, have the benefit of Trustee and Home Lending services from MyState.
“As part of the acquisition, we are also looking forward to welcoming financial planners and support staff into the Fiducian family, so where possible, there is a continuity of service to clients.”