WHK ‘tucks in’ to new practices
Independent financial planning organisation WHK Group has acquired a further two accounting groups as part of its expansion strategy, giving the group potential total acquired revenue of about A$30 million.
The two new groups were purchased as part of WHK’s ‘tuck in’ strategic member firm acquisitions, and bring the group’s buying spree total to 16 ‘tuck in’ acquisitions in the past six months.
The latest purchases include: Ward Wilson, a regional accounting firm based in Southland, New Zealand, and BM O’Donnell & Co, a small accounting practice based in Birchip, Victoria.
WHK Group’s managing director Kevin White said the accounting firm transactions were consistent with the company’s growth strategy of supporting the development and expansion of core member firms into major businesses “with a competitive advance through scope and scale” of operations as part of a national listed business and financial services group.
“When completed, these transactions will increase total acquired revenue in the current financial year to approximately A$29.8 million,” White said.
He said these transactions have not been included in the Company’s 2006-07 revised guidance provided to the ASX on February 21, though White said: “They are not expected to have a material impact in the current financial year, as their revenue and profit impact will be substantially diminished by timing and seasonality factors.”
White said Ward Wilson is an important strategic merger transaction for the group, as the merger with Ward Wilson’s member firm, WHK Cook Adam, will give rise to “a most substantial business”, with revenue in excess of NZ$20 million and wide coverage and growth across New Zealand’s Southland and Central Otago regions. The Ward Wilson transaction involves the payment of cash and the issue of approximately 740,000 WHK Group shares. The transaction is expected to be effective from June 1, 2007.
BM O’Donnell & Co has been acquired by WHK’s Mildura-based member firm WHK Thomsons, and has fees of approximately $100,000.
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