Azimut Australian arm to buy financial adviser in Australia

Eugenia Jiménez
Azimut Australian arm to buy financial adviser in Australia

AZ Next Generation Advisory (AZ NGA), the Australian subsidiary of Italian firm Azimut, has signed an agreement for the full acquisition of Farrow Hughes Mulcahy (FHM).

The agreement includes a share swap of 49% of Farrow Hughes Mulcahy’s 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.

The total value of the transaction considering both the cash and share swap entails a purchase price of around A$9.3m (€6.2m). FHM operates under the Australian Financial Services License regime overseen by ASIC, hence the acquisition is not subject to the approval of the local authority.

Since May 2015, AZ NGA has carried out several acquisitions aiming to expand its business such as that of Menico Tuck Parrish Financial Services (MTP) in May.

Paul Barrett, AZ NGA CEO, said: “FHM are a natural fit for AZ NGA as the team is lead by highly experienced financial planners in Craig Hughes and Daniel Mulcahy supported by general manager Michael Furness. They have an exciting growth plan which we will be able to assist with.”

Daniel Mulcahy, of FHM, added: “It is great to be able to secure our futures using this long term succession solution and “de-risk” our succession in a volatile, competitive market.”

Sergio Albarelli, CEO of Azimut Holding, commented: “We are very proud and satisfied with the development of our Australian business which now accounts for one third of the total AuM we manage outside of Italy and has contributed to position the group’s total AuM managed by our international operations at almost 22%. The numbers we produce out of Australia are more and more solid and are supporting our growth path within Australia as well as in all the countries we are present in. We will continue to pay strong attention and diligence towards our international strategy which is now part of our key pillars.”

AZ NGA had more than €47bn in AuM as of the end of July 2017.

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