Tranzact takes its acquisition strategy across the Tasman

insurance financial adviser

3 April 2007
| By Kate Kachor |

Tranzact Financial Services plans to bolster its presence within the financial advisory practice arena with the group set to roll out an acquisition strategy in the coming months.

The group, partly owned by Grosvenor Financial Services, plans to create strategic relationships through its ‘Partnership for Growth’ model in a two-pronged approach in Australia from its existing business base.

The first approach involves the provision of support services to financial adviser practices, which may include Tranzact taking a financial interest in the practices through its growth model.

The acquisition of a 20 per cent interest in Group Insurance & Superannuation Concepts (GIS Concepts) will be the first step in the strategy.

The second approach involves the provision of master fund administration and management services. Tranzact has around $500 million of funds under administration or management in various master funds.

However, before the group rolls out its growth model in the local market, it has completed a number of deals with financial adviser practices based in New Zealand.

Tranzact has finalised the purchase of Rutherford Rede Limited and Cheltenham Services Limited, which operate a financial adviser practice in Auckland and Hamilton. Both Rutherford Rede and Cheltenham Services use support services provided by Grosvenor Financial Services.

Tranzact look set to continue its buying spree across the Tasman with the company in the final stages of further negotiations with another advisory practice operating out of Auckland and the Wairarapa. If negotiations are successful, the company intends to merge this practice with Cheltenham Services.

The company is also expecting to release details of further negotiations with other New Zealand-based advisory practices in the coming months.

“These strategic relationships represent important steps towards rolling out Tranzact’s ‘Partnership for Growth’ model in Australia from its existing business base,” a company statement said.

“The recently announced memorandum of understanding with GIS Concepts demonstrates the potential for Tranzact to apply its business model in Australia and the company is actively seeking further opportunities in this growth market.”

Grosvenor Financial Services, which has a major shareholding of 59.8 per cent in Tranzact, provides support services to roughly 120 financial adviser practices in New Zealand.

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