Countplus makes seventeenth acquisition
By Vishal Teckchandani
Thursday 2 September 2010
Countplus has made its seventeenth and second last acquisition before it is spun off for listing by its parent Count Financial.
The firm yesterday said it bought a 25 per cent stake in New South Wales-based advisory boutique Cartwright Brown & Company Financial Planning.
Countplus has an option to purchase another 50 per cent of the business before listing, and has the right to buy the final 25 per cent at its discretion after the float, Countplus chief executive Jeremy Wardell said.
The company also has the option to acquire an accounting business associated with Cartwright at four times earnings before interest and tax.
Cartwright has funds under advice of around $275 million and was founded in 1994.
"This transaction is the only transaction where we have bought just the financial planning part of the accounting business, largely because the two operations are relatively independent," Wardell said.
"However, we retain the right to buy the accounting business at an agreed multiple of four times at our discretion some time in the future."
Wardell said Countplus's last acquisition before listing will be a "much larger transaction" and is due at the end of September.
Countplus made its first purchase in 2007 and plans to list on the Australian Securities Exchange at the end of 2010.
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