Italian independent asset manager Azimut has signed an agreement to acquire the entire capital of Lifestyle Financial Planning Services (LFPS) through its Australian subsidiary, AZ Next Generation Advisory Pty Ltd.
The agreement includes a share swap of 49% of LFPS’ equity for AZ NGA shares and a progressive buy back of these shares over the next ten years. The remaining 51% stake will be paid to the founding partners in cash over a period of two years.
This third agreement follows the recently announced deals reached with Eureka Whittaker Macnaught and Pride Group and is a continuation of AZ NGA’s objective of consolidating high quality Australian financial practices providing wealth management services to retail, HNW and institutional clients in Australia.
AZ NGA was established in November 2014 and is part of Azimut Group, Italy’s leading independent asset manager, established in 1989 and today operating in 13 countries with more than € 35bn in AUM (equivalent to A$52bn).
LFPS was established in 2004 by David Lannen and has overA$ 180m (€121m) of assets under advice, and provides services to over 2,500 clients. LFPS employs 9 staff in its three Victorian-based offices (Geelong, Shepparton and Echuca) offering a comprehensive range of financial planning services including investment and asset allocation advice, retirement planning, insurance, and strategic financial planning advice to its client base.
The total value of the transaction considering both the cash and share swap entails a purchase price of around €2.8m (net of €1.5m as negative net financial position).
Paul Barrett, AZ NGA CEO states: “LFPS is an impressive firm with strong leadership team. David, Lisa and Tim have established a long term track record at providing first class professional advice and have been very well recognised for their successes.”
David Lannen said “The AZ NGA opportunity has come along at a great time for us. We are very focused on growing our business and our new partnership will enable us to enhance our growth and be part of something really special for our clients, employees and shareholders.”
Pietro Giuliani (pictured), Chairman and CEO of Azimut Holding, comments: “Our Australian partnership model is growing at a rapid speed in terms of size and professional people involved and we are very satisfied to have already reached a solid AuM and clients base. The first semester of 2015 has been the best in Azimut Group’s history, thanks to the contribution of all business units and divisions. We continue to grow in Italy with excellent results, while remaining focused on developing our presence in higher growth markets overseas, which represent today over €4.1bn or 12% of our total assets.”