Fiducian has announced the acquisition of MyState's retail financial planning business in Tasmania for A$3.5m in a move it said will allow it to focus on areas of competitive advantage.
According to a statement to the ASX, the acquisition of MyState's advice business is expected to be earnings per share accretive for Fiducian and is planned to complete by 30 June 2019.
The transaction will also see Fiducian and MyState enter into an ongoing referral arrangement that will involve ongoing referrals for the financial planning arm from MyState to Fiducian and home mortgage lending and trustee services from Fiducian to MyState.
Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services"
According to the announcement, Fiducian already has A$2.7bn in funds under advice and more than 40 offices nationally as its acquisitive growth strategy of buying smaller financial planning businesses continues apace. MyState's retail financial planning business has more than A$340m in funds under advice.
"We are excited to consolidate our presence in Tasmania with this acquisition and to work with MyState to ensure that our clients continue to have access to quality financial planning services and as well, have the benefit of trustee and home lending services from MyState," Fiducian's head of business and distribution, Jai Singh, said.
"As part of the acquisition, we are also looking forward to welcoming financial planners and support staff into the Fiducian family, so where possible there is a continuity of service to clients."
MyState managing director and chief executive Melos Sulicich said it looks forward to working with Fiducian to ensure that the transition for its customers is smooth, simple and straightforward.
"This is a strategic move for the MyState Group which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage," Sulicich said.
"Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services."
MyState Limited is an ASX listed holding company which also includes MyState Bank. Fiducian is also ASX listed.