Investor Group merges with PKF
Accounting and financial planning consolidator Investor Group (IGP) has revealed its biggest corporate play to date, merging with accountancy giant PKF.
Under the deal worth more than $50 million, PKF's four capital city offices will become one of five separate divisions in the Investor Group structure. In return Investor Group has issued about 10 million new shares to the PKF firms in Sydney, Melbourne, Brisbane and Adelaide, giving the accountancy group a 20 per cent shareholding.
Investor Group managing director Kevin White says the two groups are very complementary.
"We see the culture of the groups as being a natural fit," he says.
White says the merger with PKF will enhance Investor Group's business service capability through PKF's specialist accounting division. On the other hand PKF will leverage Investor Group's financial services resources such as its software platform and WealthWrap wrap account.
The move will also open up greater access to locations for both groups, via the alliance of Investor Group's twelve regional accounting firms and the PKF capital city offices. PKF managing director Paul Bull says the customer service is a focus.
"The merger will mean we can offer clients a broader range of financial services in more areas throughout the country.
The deal will also mean access to working capital for further business development," he says.
Further shares will be issued to staff to act as incentives in the groups bid to retain its staff.
PKF will continue trade under its own name but will be united under the Investor Group banner. The five separate divisions to the business structure once the merger takes place will be PKF, Investor Business Services, Investor Group New Zealand, Investor Financial Services and Professional Practices Network.
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