Under the agreement, Fiducian will pay approximately $3.5 million to acquire the MyState financial planning client book with more than $340 million in funds under advice. The transaction, which is expected to be broadly NPAT neutral for MyState in future years, is expected to complete before 30 June 2019.
ASX-listed Fiducian has approximately $2.7 billion funds under advice and 40 practices nationally.
“We are very pleased to have reached this agreement with Fiducian,” MyState Limited managing director and CEO Melos Sulicich said.
“We believe its Tasmanian footprint and dedicated financial planning focus provide a great fit for our customers and staff. We look forward to working with Fiducian to ensure that the transition for our customers is smooth, simple and straightforward.
“This is a strategic move for the MyState Group, which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage. Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services.”
The transaction will see Fiducian and MyState enter an ongoing referral arrangement that will involve ongoing referrals for Financial Planning from MyState to Fiducian and Home Mortgage Lending and Trustee services from Fiducian to MyState.
Fiducian group head of business development and distribution, Jai Singh, said the group is excited to consolidate its presence in Tasmania with the acquisition and to work with MyState to ensure that its clients continue to have access to quality financial planning services and the benefit of Trustee and Home Lending services from MyState.
“As part of the acquisition, we are also looking forward to welcoming financial planners and support staff into the Fiducian family, so where possible, there is a continuity of service to clients,” he said.
Fiducian has already completed acquisitions of financial planning clients with more than $219 million in funds under advice during this financial year.