Spring Financial Group (Spring FG), a Perth-based advice firm, has agreed to purchase all the issued capital of Wealth Today, a Western Australia-based financial services dealer group with around $200m of funds under advice.
Wealth Today, which was founded in 2008, employs nearly 40 representatives. The company has operations in Western Australia, South Australia, Victoria, New South Wales and Queensland.
The acquisition, expected to be settled within the next 14 days, will expand Spring FG’s presence beyond its existing Eastern seaboard concentration. Spring FG expects the takeover to add over $4m in revenue annually to its books.
Spring FG will pay a total of $1.67m for the deal. These include a cash payment of $200,000, issuance of $956,000 Spring FG shares at $0.15 per share, and a two-year interest-free convertible note with a conversion price of $0.25 per share.
Major Wealth Today shareholders may also secure an additional $533,000, which would be added to the convertible note, subject to EBITDA targets over the coming 12 months.
Spring FG founder and managing director Keith Cullen said: “The acquisition brings to the Company an experienced and dedicated team of head-office personnel and authorised reps, and an established brand to build our dealer group operations under.
“We will benefit from an established infrastructure, while existing Wealth Today authorised reps and those joining the group can expect significantly expanded services including our proven range of marketing and lead generation programmes, and established training and education services.”