Sequoia Financial Group (SEQ) has reached a binding agreement to sell 80% of its equity interest in Morrison Securities to New Quantum (NQ) for A$40.5m ($26m) in cash.
NQ currently provides its clients a wide range of digital wealth management platform offerings.
Following the completion of the deal, Morrison will have a debt free balance sheet with $10.5m of net working capital.
Sequoia will employ $0.5m of the deal price to create a trust for Morrison employees. Morrison will own shares in Sequoia and vest to staffs for the next 18 months.
Sequoia will continue to hold a minority share in Morrison, as part of the new deal.
New Quantum has already paid a deposit of $1.5m, with plan to pay additional $9m by 20 March 2023. Further payments are expected to be made at the end of May and August this year.
In a statement, Sequoia said: “SEQ received several expressions of interest for acquiring part or all of Morrison over recent times but selected NQ as our business partner because of its flexible approach to this transaction and its desire for SEQ to maintain an active role in the development and growth of the business.
“This growth will be guided by our experienced and professional executive team at Morrison who will continue to manage the business alongside NQ who are committed to investing in technological solutions that will improve the service offering to the very loyal customer base of Morrison.”
Sequoia further noted that its balance sheet had limited Morrison’s scope to expand its services.
The latest deal, which awaits approval of customary conditions, is anticipated to be completed by August this year.
It comes shortly after Sequoia announced an agreement to buy US-based Zeke Capital Advisors.