SYDNEY, AUSTRALIA: Prime Financial Group (ASX:PFG), an Advice, Capital and Asset Management Group, has entered into an agreement to expand its Business Advisory & Consulting capability via the acquisition of the leading Australian remuneration and employee share plan administration business conducted by Equity Plan Management Pty Ltd and its associated entity Remuneration Strategies Pty Ltd.

Total consideration is up to $5.7 million. Initial consideration of $2.8 million will be payable upon completion and $100,000 will be payable on 30 April 2025. Two additional tranches of up to $1.4 million each will be payable following the first and second anniversaries of completion subject to EPM achieving specified earnings targets.

Equity Plan Management (EPM) is one of the most experienced remuneration and employee share plan management administrators in Australia.

As well as complete outsourcing of remuneration and employee share plan management and administration, EPM provides training, implementation and support services.

The acquisition marks Prime Financial Group entry into the remuneration and employee share plan management sector and delivers on its strategy of growth through complementary, EPS-accretive acquisitions and expanding its capability within its Business Advisory segment focus for Emerging Businesses.

The acquisition is also complementary to PFG’s existing Capital & Corporate Advisory capability and supports Prime’s ambition to accelerate growth and provide clients with additional solutions across a diversified range of services, with significant cross-selling opportunities across PFG.

The EPM business has a favourable financial profile with strong recurring revenues and margins. It is expected to add revenue and EBITDA run rate of $2.2+ million and $1.3+ million per annum, respectively.

Prime Financial Group CEO, Managing Director & Chairman, Mr Simon Madder said: “We are delighted to be expanding our Emerging Business segment offering through the acquisition of EPM, a market leader in its category.

“Entering into the employee share plan management sector is a logical next step for Prime. It provides us with a highly complementary product suite that adds to our existing Business Advisory offering and provides significant cross-sell opportunities across our combined client base.

“The acquisition of Equity Plan Management (EPM) will not only give us ownership of a leading Australian remuneration and employee share plan provider, but also provide us with strong profitability and a suite of well-established and loyal clients.

“We look forward to bringing our two businesses together with a respect for the legacy that EPM Director John Day has built as the Company’s founder. PFG has a successful track record of working with founders and has at least 17 founders as part of its leadership team. We warmly welcome the well-established and capable EPM team to PFG.”

PFG considers that the following reference points provide the best basis for assessing the likely impact of the acquisition:

• PFG’s calendar year 2023 financial results (being the most recent period that has been subject to audit review); and

• The financial results for Equity Plan Management for the 12 months ending 31 March 2024 (being the most up to date financial information).

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