Centrepoint Alliance has agreed to purchase the financial advice businesses of ClearView Wealth for $15.2 million.
The company says in a statement that the financial advice businesses of ClearView include ClearView Financial Advice, Matrix Planning Solutions and LaVista Licensee Solutions.
It says the purchase will be financed by the issue of $12 million in escrowed Centrepoint Alliance shares and a cash consideration of $3.2 million.
As a result, ClearView Wealth will become a 25 percent shareholder in Centrepoint Alliance.
John Shuttleworth, Centrepoint Alliance CEO, says this transaction “…represents the next phase of Centrepoint Alliance’s growth by providing immediate scale and will increase the business’ long-term value and profitability.”
In announcing its full year results the company says despite a challenging year for the advice industry, which saw overall adviser numbers decline further, the group had continued boost its member base.
It highlighted strong growth during FY21, including a net profit after tax of $1.8m, six percent growth in gross revenue and an adviser base of 315 authorised representatives.
The company says self-licensed firms increased by 16, including three new wholesale contracts, taking the total number to 149. It notes that an additional 23 existing firms were transitioned to a new fee for service offer.
