Powered by MOMENTUM MEDIA
investor daily logo

DKN eyes NSW firms

By Victoria Young
 — 1 minute read
Listed financial services provider DKN has taken a strategic stake in an integrated financial solutions firm.
DKN Financial Group (DKN) has taken a 30 per cent stake in Gold Coast-based UPA Financial Solutions (UPA), with the group poised to make more acquisitions.

DKN chief executive Phil Butterworth told InvestorDaily the listed firm is in talks with several New South Wales companies to complete its national footprint.

News of the talks comes just a week after Lonsdale Financial Group rejected Count Financial's offer of purchase and confirmed it was in advanced ongoing discussions with DKN.

Advertisement
Advertisement

The UPA deal represents DKN's sixth and largest investment. It comprises $5 million of DKN scrip, plus $1.25 million of zero-priced options subject to the achievement of 2008 financial year profit forecasts.

An additional cash payment of up to $1.3 million will be made in November 2008 if profit goals are surpassed.

"Financially it's been the biggest one. UPA was the most expensive, in terms of higher purchase price because of their profit, that we have acquired so far," Butterworth said.

"UPA has an organic and acquisitive strategy in regard to buying other accounting firms and growing their model nationally."

The deal will be finalised later this month.

UPA has $100 million funds under advice, annual turnover of $5 million and 32 staff, including three financial planners.

It integrates accountants, solicitors, business brokers and financial advisers to service a client base of small business owners.

With DKN's financial backing, it plans to roll out the model nationwide turning accounting practices into comprehensive financial services companies.

DKN also has minority stakes in Melbourne-based financial planning company MW Planning, South Australian financial planning company the Thornton Group, Tulare Financial Planners in Adelaide, Queensland-based Quill Group Financial Planners and Goldsborough Financial Services in South Australia.

DKN eyes NSW firms
Listed financial services provider DKN has taken a strategic stake in an integrated financial solutions firm.
investordaily image
investordaily image
ID logo

related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.