WT Financial to Acquire Millennium3


WT Financial Group is to acquire 100% of the issued capital of financial advice network Millennium3 Financial Services from Insignia Financial.

In an ASX announcement WTL says the M3 network includes more than 140 wealth and personal risk insurance advisers operating in more than 75 privately-owned practices across the country.

It notes M3 is one of Australia’s most established networks of financial advice professionals, with its origins tracing back over 30 years. WT will pay $2.01 million to acquire the firm (also see: Insignia Advice Restructure).

Keith Cullen …WTL presents as an ideal home for M3 advisers – one where we believe they can, and will, flourish

It states that the acquisition “…further cements WTL as amongst the largest financial adviser networks in Australia.”

WTL CEO, Keith Cullen, says the acquisition represents a significant opportunity “…to continue to leverage our robust and scalable infrastructure for the benefit of the advice practices we support. WTL presents as an ideal home for M3 advisers – one where we believe they can, and will, flourish.”

He adds his firm is delighted at the opportunity to retain M3’s frontline support staff and regional managers “…who we believe will add significant value to our group. We’re delighted too that outgoing M3 CEO Helen Blackford has agreed to remain for a transition period to support the integration of M3 into WTL’s operational structure”.

…a relatively seamless transition is anticipated …ensuring minimal disruption for M3 advisers and their clients…

WT says that Insignia currently services the M3 network primarily via a centralised support group “…in the same manner that WTL supports each of its Sentry, Synchron and Wealth Today cohorts via its Wealth Adviser hub. Further, its policies and processes, and technologies deployed at both a licensee and practice level are also kindred. As such a relatively seamless transition is anticipated … ensuring minimal disruption for M3 advisers and their clients.”

Cullen adds that the M3 fee structure closely aligns with the structures his firm operates across its existing cohorts on a net per practice and per adviser basis.

“Additionally, it includes a variable fee component, aligning our interests in helping practices grow their own revenue and profitability, which is our core focus at a time of unprecedented opportunity for advice professionals and advice network operators alike”.

WT says the acquisition is “…highly synergistic and accretive to earnings. Based on its modelling, once fully integrated into its operations, WTL expects the acquisition to contribute more than $50M of revenue; circa $4.5M of gross profit; and more than $500k of NPBT to the group on an annualised basis.”

It notes that on completion the M3 network will add “…circa $5Bn in FuA and more than $150 million of in-force risk insurance premium bringing WTL FuA to circa $23Bn and in-force premium to circa $470 million.”

Settlement of the acquisition is scheduled to occur by mid-December 2023.