Clime Investment Management has agreed to acquire the Madison Financial Group (MFG).
MFG provides licensing, compliance, technology and support to around 100 financial advisory firms licensed under its Australian Financial Services License.
Collectively, MFG has around A$3bn (£1.6bn, $2.1bn, €1.9bn) in funds under advice and total in-force insurance premiums of A$65m, with total gross annual revenue around A$34m.
MFG’s advisers will benefit from the deal by gaining access to clients from Clime’s existing 45,000 subscriber database; a greater pool of investment opportunities for clients; and equities research and capability.
As part of the acquisition, MFG chief Annick Donat will join the Clime executive team and continue in her role leading the Madison business.
Tumultuous few years
Rod Bristow, chief executive of Clime, said, “Clime is consciously ‘running against the grain’ of the rest of the industry by investing in financial advice given our strong belief in quality advice as a way to change people’s lives for the better.
“The wealth management sector in general has had a tumultuous few years and we look forward to supporting MFG’s adviser community with stability, efficiency gains and growth opportunities aligned to Clime’s values of integrity, transparency and conviction.”
Finances
The financial terms of the acquisition were not disclosed.
To fund the acquisition, Clime has successfully completed a A$4.5m institutional placement at an issue price of A$0.46 per share.
The placement closed fully subscribed and Clime will welcome “several new strategic investors to the group as a result”.
