Provisio deal to cost Rubik more than $3 million

annual-general-meeting/Software/financial-planning/mergers-and-acquisitions/income-tax/

17 June 2013
| By Jason |
image
image
expand image

Rubik will move to finalise its purchase of Provisio Technologies by the end of the month, with the final purchase price dependent on Provisio's earning across the 2013-2015 financial years. A minimum price of at least $3 million has been set.

Rubik announced in February it had signed a provisional agreement to acquire Provisio and announced today that the deal would be concluded by 30 June, with an upfront payment of $290,000 and 2.1 million shares in Rubik. This will be followed by a further $1.15 million, comprised of cash and 4.9 million shares, following Rubik's annual general meeting in November.

Further payments will be made in 2014 and 2015 based on Provisio's earnings before income tax, depreciation and amortisation (EBITDA), with Provisio's EBITDA for 2012 being $0.55 million and projected to be $1.6 million in 2013. Rubik will fund the acquisition using existing cash reserves and by issuing equity in the group.

Provisio has confirmed plans to offer its scaled advice platform to independent planners and advisers by providing free access to a limited number of planners before a wider rollout later in the year. The platform will also be integrated into Rubik's COIN software from the last quarter of this year.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND