SYDNEY, AUSTRALIA: Clime Investment Management Limited (CIW) has reached an agreement with the principals of MTIS Wealth Management and Investment Strategists Accounting Services (ISAS) to purchase the operating assets of MTIS for $7 million. The acquisition will be funded from existing cash reserves.
MTIS is a diversified wealth management, advisory and accounting/tax services business founded by Pauline Hammer and Anna Garuccio. MTIS has approximately $380 million in funds under management and administration, with total gross annual revenue of approximately $3 million.
Pauline and Anna are committed to staying with CIW/MTIS for the foreseeable future, and their experience and networks will be highly complementary to Clime Investment Management (CIW).
MTIS, headquartered in Melbourne, has a well-established 25-year history of servicing more than 300 valued clients around Australia. MTIS and Clime Private Wealth offer similar and complementary services, and CIW will maximise synergies by merging the Melbourne offices. Madison Financial Group will provide administration support and AFS Licensing support.
CIW intends to complete the acquisition of the assets of MTIS on 1 July 2022. The agreed acquisition price is $7 million, with a first payment on 1 July 2022 and two further payments (subject to agreed adjustments) over the next 2 years. CIW will be protected against a reduction in revenue (of more than an agreed amount) post-acquisition by agreed adjustments to the second and third payments.
Commenting on the transaction CIW CEO Annick Donat said “The acquisition of MTIS fits into Clime’s strategy to create wealth for our clients, supported by high quality advice. Pauline, Anna and the team have an outstanding track record of assisting their clients to achieve their financial aspirations, which aligns with our company values. This transaction expands our Private Wealth presence in Melbourne’s CBD and creates new market opportunities for the Group. We are delighted to have the MTIS team become part of the Clime family and look forward to a successful future together.”
The MTIS transaction follows CIW’s recent announcements of the acquisition of Ralton Asset Management Pty Ltd and the strategic alliance with Torica Funds Management. The platform for this growth and expansion was set by the merger of CIW with Madison Financial Group in June 2020.