SMC Entertainment is purchasing 100% equity interest in Genesis Financial, which specialises in fintech-driven wealth management advisory services.
The deal, valued at $45m, is expected to close on 10 December 2021.
Under the agreement, SMC will issue convertible Series B Preferred Shares worth $45m.
Genesis operates its business through two Australian regulated entities, namely Ballast Accounting and The Financial Link Group, in wealth management, tax, and accounting advisory services.
It has 23 employees in addition to 120 financial consultants, advisors, and representatives.
For the nine months to September 2021, Genesis’ Australian recorded a revenue of approximately $15.76bn.
As part of the deal, Genesis will be able to nominate two members to the board of directors.
The company’s management and executive team will be expanded to align with its new growth platform, SMC said.
Additionally, SMC is planning a capital raise of $15m to propel further expansion, acquisitions and working capital of Genesis.
Commenting on the deal, Genesis chairman Warwick Kerridge said: “We are now positioned to finalise a business model that delivers for our advisors, and those wishing to join us, an opportunity to generate both revenues and value for themselves.
“This includes our dealer group and delivers to our clients the best practice advisory platform. Finally, but by no means least, we are nicely positioned to provide our stakeholders with the opportunity to be with us at such an exciting time in our corporate journey.”
SMC CEO and chairman Ron Hughes added: “The market, I believe will be pleasantly awakened to this acquisition. Genesis has a wonderful path ahead of itself, and I am very pleased that our shareholders will be the beneficiaries of Genesis’ expansion into the US.”