AWI looks to expand its self-directed investor services
Australasian Wealth Investments (AWI) has entered into a heads of agreement to buy an online business that provides financial services and products to self-directed investors.
The purchase of the Australian-based online portal involves a cash payment of $10.5 million plus $2 million of AWI shares and is dependent on a due diligence process by AWI, expected to settle on 13 December 2013.
In its release to the Australian Securities Exchange, AWI stated that it has received limited information from the vendor and may terminate due diligence at any time. In the event that the transaction does not go ahead, the vendor will pay AWI a break fee of $30,000.
According to AWI, the online business has revenues of $5.2 million, funds under administration (FUA) of $915 million and more than 16,000 invested clients.
Upon completion of the transaction, AWI will own two online self-directed financial services portals with combined FUA of approximately $1.6 billion and over 40,000 invested clients.
AWI expects to use the proceeds of its current rights issue to settle the acquisition, if the due diligence proves successful.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
