SYDNEY, AUSTRALIA: Centrepoint Alliance has agreed to purchase ClearView Financial Advice Pty Ltd, Matrix Planning Solutions Ltd and LaVista Licensee Solutions Pty Ltd (together ClearView Advice) from ClearView Wealth Limited.
Combined entity will have significant scale and access to further growth opportunities, with 1,303 advisers (490 licensed and 813 self-licensed), market-leading advice technology (Lumen compliance monitoring, Enzumo adviser technology customisation and Compass integrated financial planning software) and a strong institutional shareholder and strategic partner in ClearView, which will become a substantial (25%) shareholder in Centrepoint Alliance.
Total consideration of $15.2 million, comprising $3.2 million in cash and $12.0 million in escrowed CAF shares, presents significant accretive value to Centrepoint Alliance at an FY21 revenue multiple of 1.2x.
It is envisaged that ClearView’s Managing Director and CEO, Mr Simon Swanson, will join the Centrepoint Alliance Board upon completion, expected on or around 31 October 2021.
Centrepoint Alliance CEO, John Shuttleworth, said: “Centrepoint Alliance is proud to have delivered continued improvements in revenue and profitability throughout FY21. Our net profit after tax of $1.8m compares very favourably to the $2m net loss after tax recorded in the prior year, representing solid performance through challenging trading conditions.
“When I joined Centrepoint Alliance earlier this month, I found a Company that benefits from a very favourable position in a rapidly evolving advice industry, with competitive pricing and capabilities in both the licenced and self-licensed segments. In a regulatory environment that is becoming increasingly complex, Centrepoint Alliance remains well positioned to assist firms to run compliant practices and benefit from quality support services.
“Focusing on our core business has positioned the Company with a strong platform for growth that continues to present an attractive destination for advisers. We enter FY22 with a positive outlook for growth and look forward to providing quality business services and support to a broader range of financial advice professionals in the year ahead.”
ClearView Advice consists of three ClearView subsidiaries: ClearView Financial Advice Pty Ltd (CFA), Matrix Planning Solutions Ltd (Matrix) and LaVista Licensee Solutions Pty Ltd (LaVista).
These businesses are market leading providers of licensing solutions to financial advisers. CFA and Matrix are mid-sized AFS Licensed dealer groups, together providing traditional dealer group licensing support to a network of 175 advisers.
LaVista, with a network of 106 advisers across 34 adviser practices, provides outsourced B2B licensee services to self-licensed financial advisers and support services to third party dealer groups. ClearView Advice benefits from best-in-class technology, having fully integrated Lumen software, which allows for automated compliance monitoring and supervision across all clients under the licensee.
ClearView’s advice businesses have been named Australia’s Overall Licensee of the Year in three out of the past four years, as rated by independent research company CoreData.
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25 Aug, 3:33 pm GMT+10 ·Disclaimer
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