In a deal that was first announced in March, Sequoia Financial Group has finalised the divestment of 80 per cent of equities clearing, brokerage, and settlement company Morrison Securities.
New Quantum has concluded the last tranche of the $40.5 million acquisition, which it said would create a “a combined entity handling over $2.2 billion trades per annum and $20 billion of committed funds under management on the New Quantum platform”.
New Quantum Group chief executive Shantanu Jha said: “New Quantum’s acquisition of Morrison Securities is the cornerstone of a series of transactions laying the foundation for both its domestic and global growth.”
The firm said it seeks to build on Morrison’s infrastructure and become the “definitive platform for fintech and financial services firms”, adding it would focus on automating the complex workflows around wealth management and superannuation funds.
Tech-focused hedge fund Beaconsfield Capital Management, which is based in London and Boston, is backing New Quantum as its equity sponsor.
New Quantum also said it has plans for global expansion, including developing strategic partnerships in the Middle East, Asia, and the US, particularly around its technology infrastructure platform for government pension funds.
“New Quantum’s mission to automate and abstract away the complexities of regulation, administration, and capital allocation is uniquely geared to creating a revolution in the financial services world,” Mr Jha said.
“We believe New Quantum’s operating system for financial services firms, combined with the venerable financial infrastructure of the newly acquired Morrison, exemplifies the power of vertically integrated business models that can internalise the value created by the underlying technological automation.”
Executive director of New Quantum’s Australia business, Jong Chung, said: “The acquisition of Morrison makes New Quantum a unique value proposition in the Australian financial services world: we offer a technology platform of unique breadth and depth buttressed by one of Australia’s most reputed independent financial services firms.”
New Quantum also has plans to list on the Nasdaq through its reverse merger with Canna Global, signing the business combination agreement in June that valued New Quantum at over $1.2 billion.
In August, Sequoia said the pool of liquid capital from the divestment would allow it to fund acquisitions with cash rather than via the “dilutionary effect” of issuing new shares.
“We expect organic growth within all four operating divisions and the focus on acquisitions will be within our licensees services and professional services divisions,” it said.
Sequoia recently completed the acquisition of Castle Corporate and Castle Legal, which aligns with Sequoia Financial Group’s strategic vision of providing an “extensive range of services to accountants, financial advisers, AFSL holders, and lawyers”, the firm said in August.
“Our service offerings deliver solutions to those who appreciate the value and timeliness of products, services, and advice acquired through scale and technology platforms,” it added.