Australia-based WT Financial Group (WTL) has brokered a deal to buy its larger rival and privately-owned financial adviser group, Synchronised Business Services.
WTL will pay a total consideration of up to $7.96m, consisting of at least $3.5m in cash and $1.02m worth of shares.
Melbourne-headquartered Synchron was established in 1998 by Don Trapnell and John Prossor.
Trapnell and Prossor will continue with the firm, with Trapnell becoming the chairman of Synchron.
WTL said that the acquisition is ‘highly synergistic and accretive to earnings.
The combined business will have more than 600 advisers and $16bn in funds under advice.
Synchron’s state manager line will add resources to WTL’s group operations to support its advisers across its Wealth Today and Sentry adviser groups.
As part of the deal, WTL will expand Synchron’s NextGen programme across the group. This programme supports the professional development of new market entrants.
Furthermore, Synchron advisers will be able to take advantage of WTL’s adviser education and training programmes, its practice management tools and programs as well as its risk management framework.
WTL CEO Keith Cullen said: “The Acquisition cements WTL as the largest independent – or non-institutionally-owned, non-product producing financial adviser network in Australia and establishes the right scale of operations to enable us to provide the critical supports advisers in our modernised industry demand.
“It is a highly synergistic acquisition and is significantly accretive to earnings – the resulting scale will set the course for future expansion and more depth in our offerings for advisers.”
Trapnell added: “Selling Synchron into WTL represents the next stage of growth for our company. “With WTL’s focus on outcomes for its advisers, and its strong strategic direction, the Synchron business will benefit from integration into the WTL business – with advisers from each of the cohorts benefiting from a broader base of personnel and programs to help support and grow their businesses.”