Financial services aggregator WHK Group (WHK) has agreed to buy regional accounting business KPMG Albury and its financial planning unit, Excel Financial Planning.
The firm will pay an undisclosed sum of money and issue 1.2 million WHK shares for the Albury, New South Wales practice.
The deal is expected to bring in $10 million in annual revenue, and strengthen WHK’s position as Australia’s fifth-largest accounting firm by adding 80 staff and $200 million in funds under advice (FUA).
“The firm (KPMG Albury) has a strong position in the Albury (and) Wodonga market and is an important acquisition as it will provide a strong regional presence and wide coverage across a large and growing market,” WHK said in a statement to the Australian Securities Exchange (ASX).
The acquisition, expected to finish on 31 March, 2008, is to become WHK’s 22nd member firm.
WHK acquired four practices in November. At the start of this month, the company reached the $9 billion in FUA mark.
In August the group reported a record net profit of $24.4 million for 2007, up 12 per cent from last year.
WHK’s shares closed seven cents lower to $2.30 at the close of trading on the ASX yesterday.
