SYDNEY: CountPlus Limited’s member firm, AdviceCo Pty Ltd has finalised terms to acquire the accounting revenues of Arch Capital Pty Ltd.
The transaction broadens AdviceCo’s accounting fee base, adding additional scale for only modest incremental costs. Consideration for the acquisition is cash of $0.4 million, with 65% to be paid on completion and the balance dependent on recurring revenues, spread over two 12-month periods post completion.
AdviceCo will fund the acquisition from available cash reserves. The acquisition is expected to be earnings accretive within the first year.
Matthew Rowe, Chief Executive Officer and Managing Director of CountPlus, says, “The Arch Capital transaction highlights the ability of CountPlus member firms to identify and acquire quality tuck-in opportunities. These transactions are an important contributor to the overall growth of our member firm network”.
Commenting on the acquisition, Mr. David Evers, Managing Principal of AdviceCo said: “Our due diligence revealed Arch Capital to have a quality client base, which will bolster the accounting fee base of AdviceCo”.