Deakin reveals acquisition talks with AustChoice
DeakinFinancial Serviceshas confirmed speculation it is in discussions withAustChoice Financial Servicesregarding a possible acquisition, after an announcement to theAustralian Stock Exchange.
“We are in preliminary discussions with AustChoice. They have substantial funds under administration, so a merger has obvious attractions and would give us a strong platform on which to move forward,” Deakin executive chairman Rob Hunwick says.
“[However] at this point the discussions are at a preliminary stage and no terms for the acquisition have been settled or agreed by the parties,” he adds.
Deakin has $300 million in funds under advice (FUA) compared to AustChoice’s more than $1 billion under advice.
Hunwick says it was AustChoice, which holds close to nine per cent of Deakin’s listed stock through its administratorSMF Funds Management, which made the approach for a possible deal.
Hunwick adds the main issues on reaching a deal, which he expects to happen “fairly soon”, will centre on price — likely to involve some form of stock option — and the business strategy going forward.
AUTHOR
Craig Phillips
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
