Firstfolio acquires Club Financial Services
Independent financial services and mortgage distribution group, Firstfolio, announced it was in exclusive negotiations to acquire non-bank mortgage manager and finance brokerage, Club Financial Services, with the sale to take effect on 1 October.
The acquisition follows Firstfolio’s six other acquisitions in the past 24 months, including First Chartered Capital, Xplore Capital and eChoice.
The transaction would include Club’s $2.8 billion wholesale and aggregated loan book. Subject to completion of due diligence, Firstfolio will acquire Club’s specialist mortgage management business, the National Finance Club, and the group’s risk insurance, investment and wealth management brokerage.
Firstfolio expects its board will be able to confirm a revised forecast for the financial year 2011 operating EBITDA, from $15-16 million to $17-18 million.
Firstfolio chief executive, Mark Forsyth, said Club Financial Services is a “profitable and well run operation, currently writing in excess of $70 million in new finance commitments each month”.
“On completion, this transaction will take the company’s loan portfolio beyond $20 billion, a significant milestone that includes $12 billion in loan book acquisitions since 2008,” Forsyth said.
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