Sequoia Financial Group Limited (ASX: SEQ) has successful acquired three inter-related businesses, Informed Investor Pty Ltd, Sharecafe Pty Ltd and Corporate Connect Research Pty Ltd.
The acquisition is expected to be completed by the close of business on April 1, 2022.
Managing Director, Garry Crole, said the acquisition increases the scale of the company’s Direct Division and specifically enhances aspects of its media, research, adviser support and technology platforms, through an increased delivery of premium information and finance news content to the expanding B2C and B2B Sequoia client base.
Apart from providing significant support to the existing Sequoia network of advisers, it also assists us in developing a digital and educational content platform for all fund managers, ASX listed companies and the broader financial services industry comprising circa 2,000 AFSL holders and 17,000 authorized representatives,” Mr Crole said.
“It allows us to offer an AFSL holder a white labelled approved product platform specific to their individual approved lists and bespoke requirements. The cost of providing advice has become a core issue for all licensees as demand increases, and this will only continue with the tailwind of $3.5 trillion of intergenerational wealth expected to transfer over the next 25 years.
“The acquisition will be EPS accretive for FY23 with the transaction valuation based on a five times FY23 forecast EBITDA. The total consideration will be approximately $5.1m with an initial payment of $3m made up of $1.1m cash and 2,720,723 Sequoia shares at $0.70 per share, plus a deferred payment of a further 3,128,831 shares to be issued after 28 February 2023 subject to achievement of performance hurdles.”