Snowball, ITS deal on ice
The dealbetween the Snowball Group and financial planning and accountancy group Investment Taxation Specialists (ITS) has stalled.
More than five months after the Snowball group first announced it had entered into an agreement to acquire ITS businesses, the deal has still not progressed.
Industry speculation that the ITS businesses are in trouble, with planners pulling out of the group and buying back their businesses has only been fuelled by news of the stalled deal, which was due to be finalised last month.
However, Snowball managing director Tony McDonald adamantly denies there is any truth to the rumours as reason behind the snag in the deal.
“The deal is subject to reaching terms and reaching due diligence. There are some things that need to be satisfied before we can acquire all or part of the businesses,” McDonald says.
“We have gone back and said there are certain things that need attention, but we remain interested. The ball is in their court in terms of the conditions,” he says.
As previously reported inMoney Managementin February this year, training has already begun on the distribution of Snowball products through ITS. The ITS financial planners have also begun using Snowball’s products despite the fact that the deal has yet to be consummated.
ITS has about $250 million under administration and 100 staff, including 12 financial planners and 52 accountants. It began operation in December 2000.
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