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Firstfolio has announced it plans to acquire Apple Group, one of the company’s major wholesale mortgage distribution and financial services partners.
Under the terms of the proposed transaction, which remains subject to due diligence being completed, Firstfolio will pay $4.25 million to acquire 100 per cent of Apple Group’s assets including its $600 million loan book.
Firstfolio chief executive Mark Forsyth said that over the past 15 years the owners had built a client portfolio of almost 6,000 small and medium sized businesses and high-net-worth individuals.
“Since the Apple partnership was signed two years ago, [it has] grown from strength to strength, by successfully diversifying its earnings, expanding the loan portfolio and settling loans in excess of $200 million per annum,” Forsyth said.
“Under our ownership and with secure access to a greater scale of wholesale funding, we will look to accelerate Apple’s expansion ambitions across Victoria, Queensland and New South Wales,” he said.
The transaction would be earnings accretive immediately, with projected pre-tax earnings of $1.1 million in the current calendar year, according to Firstfolio.
Managing director of Apple Group Rob De Soza said: “Since partnering with Firstfolio and plugging into the eChoice network, we have grown our geographic distribution footprint as well as our mortgage and finance offering.”
De Soza said the industry would rapidly consolidate over the next 18 months. “Economies of scale, funding and the ability to provide tailored financial solutions and seamless service are where the industry is headed,” he said.
As part of the transaction, Apple Group Directors Rob De Soza and Gary Cumberbatch will join Firstfolio’s executive committee.
