E-Shares buys its way into financial planning
Online share trading group E-Shares is set to make a big push into the financial planning market after it agreed yesterday to purchase the Perth based financial planning practice, Norgard Clohessy Financial Planners (NCFP).
NCFP has in turn entered into agreements to purchase two financial planning practices and an accounting practice in Melbourne and a further financial planning practice in Perth, turning it into a consolidated group with an estimated funds under management of $306 million.
E-Shares will acquire the NCFP group for a combination of $5.5 million in cash and 18.3 million in E-Shares shares, with the cash component funded by a $6 million capital raising by E-Shares
The group is expecting NCFP to generate revenue in excess of $6 million in the financial year to June 2003 and to boost its total funds under management by about $120 million by the middle of next year.
The absorption of the NCFP group is part of a wider strategy by E-Shares to transform itself from primarily an online shares trader to a much broader financial service group.
As part of the deal, Patrick Canion, the current managing director of NCFP, will take over as managing director of E-Shares.
The current managing director of E-Shares, David Breeze, will stay on as executive director of the group.
Once the integration of NCFP is complete, E-Shares is expected to seek further acquisition in other Australian capital cities.
The group has already held detailed discussions with planning practises in Sydney, Brisbane and Adelaide.
AUTHOR
George Liondis
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