Prime Financial has announced the completion of its fully underwritten non-renounceable entitlement offer worth $3.3 million.
According to Prime, the funds raised will go towards its acquisition of Equity Plan Management (EPM) and the associated business conducted by Remuneration Strategies.
The completion of the acquisition was announced on Tuesday, after the firm signed a binding agreement to acquire the entirety of EPM earlier this month.
A part of the firm’s raise will be used to fund the first tranche of the acquisition valued at $2.8 million, associated transaction costs, the costs of the entitlement offer, and working capital, it said in an ASX listing.
Prime noted that the deal marks its entry into the remuneration and the employee share plan management sector and supports its ambition to accelerate growth and provide its clients with additional solutions across a diverse range of services.
Chief executive and managing director Simon Madder commented: “We are delighted to have closed our $3.3 million entitlement offer and to have completed the acquisition of EPM, marking our entry into the employee share plan management sector.”
“The EPM acquisition provides us with ownership of a leading Australian remuneration and employee share plan provider, strong profitability and a highly complementary product suite that adds to our existing business advisory offering and provides significant cross-sell opportunities across our combined client base. We warmly welcome the well-established and capable EPM team to PFG,” Madder said.
The EPM business is expected to add revenue and EBITDA run rate of $2.2+ million and $1.3+ million per annum, respectively.
Moreover, Prime shared that it is making progress with its confidential non-binding indicative offer (“NBIO”) for the acquisition of a Melbourne-based company that provides investment research, portfolio and asset/fund management services.
Previously, the firm had said that the potential acquisition will complement Prime’s wealth segment and provide it with operational, client and capability synergies.
If it proceeds, the acquisition will represent a “material contribution” to revenue in FY2024–25.
Additionally, citing recent appointments, Prime said it is now closer to delivering on its goal of doubling revenue from $26 million in FY2021–22 to $50 million in FY2024–25, and then doubling that figure again to $100 million.
