SYDNEY, AUSTRALIA: Halo Technologies has entered into an agreement to acquire 100% of Resilient Fund Managers Limited, a regulated financial services company based in the UK.

Established in 2006, Resilient Fund Managers is licensed to deal in a range of financial products and services including managed investments and securities.

The acquisition marks HALO’s entry into the UK and European markets, allowing HALO to leverage Resilient’s established regulatory structure to launch products and services into this new market.

The deal represents a material milestone for the company and delivery of the first stage of HALO’s strategic growth plan – to deliver strong growth of assets under management, client accounts and revenue growth via international expansion through acquisition – as outlined in the Company’s prospectus.

The acquisition will allow Halo Technologies to establish a footprint in the European market and provides the required framework for future UK-based acquisitions and strategic partnerships.

HALO will pay an upfront consideration of £100,000 (deposit) plus deferred consideration of £400,000. The deposit is not refundable unless the contract is terminated for breach by the seller.

Resilient Fund Managers’ key asset is its authorised status allowing it to carry on the type of activities which HALO requires to carry on business in the United Kingdom.

Favourable deal terms include the retention of Resilient’s existing and highly experienced senior management and board postsale to facilitate fulfilment of the conditions precedent to which the transaction is subject and allowing for an orderly transition to HALO personnel and ongoing compliance with licence requirements, until completion.

Completion is dependent upon the lodgement and approval of the required change of control notice by the UK regulator, the Financial Conduct Authority (FCA) which is estimated to take up to 6 months.

The timeframe to completion will provide HALO the opportunity to integrate key operations, including HALO’s proprietary technology, and management into Resilient whilst also allowing time for HALO to focus on securing further UK acquisitions and distribution partnerships, supporting strong growth via the Company’s international expansion strategy.

The counterparties to the acquisition of Resilient are HALO Technologies and GHC Group Limited – the owner of all the shares in Resilient.

Under the terms of the transaction, HALO Technologies will acquire all the shares in Resilient, its only asset being its Authorised Status with the FCA permitting it to carry on the specified activities that will allow HALO to offer its present financial services model within the United Kingdom.

George Paxton, Chief Executive Officer states: “This acquisition provides the Company with direct control of a well-established, licensed business and provides the perfect launchpad for HALO to expedite its international expansion and sell directly into the large and lucrative European market. The management team remains focused on delivering strong growth through strategic acquisitions and opportunistic partnerships to further its growth both onshore and overseas, in line with its strategic growth plans.”