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Centric to retain branding post-acquisition

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By Miranda Brownlee
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3 minute read

Centric Wealth will not be broken up and will retain its branding as part of the firm’s sale to Financial Index Wealth Accountants (FIWA).

Speaking to InvestorDaily, FIWA chief executive Spiro Paule said while the Centric brand will remain in place after the merger, the two businesses will share back-office systems and processes.  

The Centric Wealth board of directors unanimously recommended the Financial Index Wealth Accountants takeover bid to its shareholders, which will see shareholders receive 8.9 cents cash per ordinary share.

Mr Paule said the increase in scale will benefit both companies in terms of buying power, procuring products for clients, the development of services and skills within the business. 

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“There are significant skills in Centric already and there are significant skills in our business, and a lot of those aren’t identical but they are very synergistic,” he said. 

Mr Paule said the strong suite of technology solutions between the two companies will make the quality of outcomes “consistent, reliable and high quality”.

He believes combining the two companies will “bring more services to the existing client as well as to anybody else out there looking for a non-aligned advice solution instead of going to the traditional providers”.

According to FIWA, the merger will also enable wider coverage of the Australian marketplace.

Mr Paule said Centric Wealth has strong representation in markets such as Sydney, which will complement FIWA’s presence in markets such as Melbourne and Canberra. 

Centric Wealth chief executive Phil Kearns said the businesses share similar values and cultures, aimed at providing high quality, non-aligned advice for clients. 

Mr Kearns explained by leveraging each other’s processes, both companies can continue to deliver on its promise to clients in future years. 

“It’s also a win for our staff and shareholders and it will ensure we can develop and improve the service we currently deliver clients,” said Mr Kearns.

FIWA has partnered with KKR Asset Management in the deal - a credit business with $20.4 billion in assets under management. 

KKR will hold an equity interest of approximately one-third if the merger goes ahead.

Centric to retain branding post-acquisition

Centric Wealth will not be broken up and will retain its branding as part of the firm’s sale to Financial Index Wealth Accountants (FIWA).

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