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Sequoia to snap up InterPrac
Posted on Monday, 19 June 2017 10:17
Sequoia Financial Group has inked an agreement to acquire Australian financial planning service company InterPrac from stockholders Garry Crole and Brent Jones for around AUD 12.83 million (USD 9.77 million).
The consideration comprises AUD 10.63 million in shares and the assumption of AUD 2.20 million in cash.
Commenting on the acquisition, chief executive of Sequoia, Scott Beeton, noted: “InterPrac is an outstanding business that will complement Sequoia’s current operations and will deliver immediate scale to a number of our high-growth divisions.”
Completion is expected by early September, subject to the green light from certain regulatory bodies.
Following closing, InterPrac’s current team will continue to operate the InterPrac division and a number of their management team will join Sequoia’s ranks.
No further details of the acquisition were disclosed.
South Melbourne-based InterPrac was incorporated in 2001 and delivers financing planning, insurance and technical support services.
The business posted unaudited revenue and profit after tax of AUD 9.56 million and AUD 375,000, respectively, in the six months ended 31st December 2016.
Sydney-headquartered Sequoia provides investment and superannuation products, wealth management, corporate advisory and capital markets expertise.
The firm, which previously traded as MDS Financial Group, listed on the Australian Securities Exchange in 2000.
In the 12 months ended 30th June 2016, Sequoia generated revenue of AUD 22.98 million, a 7.4 per cent increase on AUD 21.41 million in the previous year.
Net profit totalled AUD 320,397 for the period, compared to a loss of AUD 17.97 million in FY 2015.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 161 deals targeting investment advice groups announced worldwide since the beginning of 2017.
The largest of these was China-based HNA Group Finance’s CNY 32.12 billion (USD 4.72 billion) share placing in March.
China Nuclear Finance, Key Retirement Group and Jiangsu Guotai Finance, among others, have also been targeted.
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