The acquisition by Findex, first reported by InvestorDaily in 4 June 2014, will see Crowe Horwath purchased for an approximate value of $200 million.
“Findex is paying 50 cents for each Crowe Horwath share, which places an enterprise value on Crowe Horwath of approximately $200 million, and covers all Crowe Horwath businesses in Australia and New Zealand,” a statement from Findex said.
“The acquisition price implies an equity value for Crowe Horwath of approximately $137 million,” Findex said.
“The balance represents Crowe Horwath debt for which Findex is assuming responsibility,” it said.
The dealer group added the addition of Crowe Horwath will create an “important strategic pillar” in the business.
“In addition to its wealth management, lending and risk protection divisions, the group now adds further expertise and market presence in accounting plus significant audit and corporate advice capabilities,” Findex said.
“The transaction will mean the Findex Group’s advisory businesses will now have more than $15 billion under advice whilst its combined accounting businesses will make it the fifth largest accounting practice in Australasia,” it said.
Group chief executive Spiro Paule said Findex will apply to the ASX for the removal of Crowe Horwath from the official list of the ASX with effect from the close of trading on 18 December 2014.
