Provisio deal to cost Rubik more than $3 million


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.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.