SYDNEY, AUSTRALIA: Australian Finance Group (ASX:AFG) has acquired a 75 per cent stake in leading asset finance aggregator, National Finance Alliance, trading as Fintelligence.
AFG will pay $52.5 million for the purchase of 75% of Fintelligence, funded primarily by a new corporate debt facility. The transaction is expected to be EPS accretive (pre-synergies) in the first full year post integration and the proposed funding structure is expected to allow AFG to maintain its dividend policy.
The combined group will have more than 3,335 brokers and will deliver combined asset finance settlements of more than $1.7 billion per annum, based on combined, proforma results. The standalone FY22 NPAT for Fintelligence is forecast to be $6.6 million.
Australian Finance Group (AFG) has an exclusive option to acquire the remaining 25% interest in Fintelligence over the next three and a half years with value linked to Fintelligence achieving agreed milestones.
The acquisition is subject to confirmatory conditions precedent, which AFG expects will be met in the ordinary course and is expected to complete by 31 December 2021.
AFG CEO David Bailey said: “This acquisition represents a significant opportunity to build a fast-growing, technology-enabled asset finance aggregation business of scale. It will drive growth in AFG’s asset finance volumes, market share for the combined group, and more lender and product opportunities for brokers and their customers.
In addition, the acquisition allows AFG to increase the availability of white label and securitised asset finance products to meet the needs of our brokers and customers”.
Mr Bailey said the transaction represents an opportunity for all AFG shareholders to benefit from the diversification and flexibility of the combined group.
The transaction aligns with AFG’s strategy to grow distribution and invest in manufacturing capability across multiple asset classes.
Darren Rumble, Fintelligence Head of Partnerships said: “This represents a great opportunity to become the leading aggregator partner across all sectors allowing AFG and Fintelligence clients to maximize their customers’ choices through product, service, innovation and industry leading technology. It’s going to be an exciting 2022 and beyond”.
Mr Bailey concluded: “I look forward to working with the Fintelligence management team and network of brokers to help fast-track growth and drive greater competition in the Australian asset finance market.”
Established in 2018, Fintelligence is a fast-growing, technology-enabled asset finance aggregation platform based in Queensland with a national presence.
Fintelligence’s Ambition Cloud is a proprietary, cloud-based, customisable asset finance broker and business management platform with the ability to seamlessly integrate into other business applications and streamline the business through built in API capabilities.
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