Synchron acquired by WT Financial Group

Australia’s largest private financial adviser group, Synchron, has been acquired by WT Financial Group, creating a business with over 600 advisers and $16 billion in funds under advisement.

WT Financial Group was the parent company of Wealth Today advisory licensee and dealer group.

The acquisition would be “highly synergistic and earnings accretive” and upon settlement, expected this week, the firm’s intercompany operations would encompass Wealth Today, Sentry Group and Synchron, making WT Financial Group the largest independent consultancy. network in Australia, the group said in the announcement to the Australian Securities Exchange.

The move would create the largest network of independent financial advisers in Australia, with over 610 advisers, over $16 billion in Funds Under Advice (FUA) and over $360 million in annual in-force insurance premiums. , as well as more than $25 million in new insurance. premium sales per year.

Following the acquisition, WT provided FY23 forecast EBITDA (earnings before interest, tax, depreciation and amortization) of over $7 million and net income after tax (NPAT) of $4 million. dollars.

Synchron founders Don Trapnell and John Prossor would continue with the company, with Trapnell assuming the role of president of WTL’s Synchron subsidiary.

The company explained that a total consideration from the seller for the acquisition would be up to $7.96 million payable in a combination of cash and stock over two years, subject to various terms and conditions, and WT Financial Group would also assume liabilities of approximately $3 million and would expect to incur transaction and integration costs of between $1-2 million, bringing the total expected value of the acquisition to $12-13 million. of dollars.

To help fund the acquisition, WTL completed a March 11 offering of 30.5 million new shares at $0.10 each to institutional and professional investors to raise $3.05 million, underscoring confidence investors in the business and financial advisory sector.

Commenting on the acquisition, WTL Managing Director Keith Cullen said: “The acquisition consolidates WTL as the largest network of independent financial advisers – or non-institutional and not producing products in Australia, establishing the right scale of operations to enable us to provide the essential support advisors demanded by our modernized industry.

“The sale of Synchron to WTL represents the next stage of growth for our business. With WTL’s focus on results for its advisors and its strong strategic focus, I am confident that the Synchron business will benefit from integration into the WTL business – with advisors from each of the cohorts benefiting from a base broader staff and programs to help support and grow their businesses,” added Trapnell.

“I and John Prossor are delighted to become shareholders of WTL and we both look forward to contributing to the expanded operations of the group and creating further value for all WTL shareholders.”