Bell Financial Group has agreed in principle to purchase investment and financial services firm Tricom Group.
A heads of agreement has been signed for the acquisition and the transaction will progress subsequent to the performance of due diligence procedures.
Consideration for the purchase is to be made up of an injection of capital from Bell Financial into Tricom. In addition, an earn-out arrangement will be negotiated for Tricom shareholders that will be dependent on agreed performance targets.
The due diligence process is expected to be completed on March 7.
Bell Financial had announced last week it was in initial discussions with Tricom with a view to acquiring the group.
It was reported at the time that Bell was potentially only interested in the futures and broking business arms of Tricom.
The news comes after the solvency of Tricom came into question last month.
In late January the broking arm of the group was unable to cover the costs of share market trades at the scheduled time of 12.30pm.
On that day settlement for those trades was delayed until 4.42pm prompting speculation over the firm's ability to continue to trade in the future.
