Paraplanning Professionals has been purchased by Tribeca, the parent of financial planning training groupIntegraTec, for more than $2 million in cash and shares, as part of its further push into back office services.
Tribeca signed a deal yesterday and will pay a maximum of $2.25 million in cash and shares throughout the course of the 2002 financial year. A minimum of 85 per cent of the purchase price will be paid in cash, and 15 per cent in fully paid ordinary shares.
Paraplanning Professionals is expected to contribute approximately $3.0 million in revenue and $425,000 in earnings to the Tribeca Group for the year ending 30 June 2002.
Under the terms of the deal, the Queensland based group Paraplanning Professionals will be renamed Integratec Paraplanning and its head office moved to Sydney. Tribeca intends to merge all three IntegraTec companies, with the merger and name change between IntergraTec and Paraplanning Professionals to begin today.
IntegraTec’s current general manager John Prowse will assume the role as group general manager for all three Integratec Companies.
The current Paraplanning Professionals general manager, Allan van den Brink will remain as the head of the Queensland operation. The previous owners of Paraplanning Professionals, Jenni Erbel and Nina Hope, will continue in senior executive positions within the IntegraTec group.
Tribeca managing director Adam Davis says the group has been in negotiations with Paraplanning Professionals for a couple of months.
“One of the reasons, we acquired Paraplanning Professionals is because they provide a range of complementary products and services to that of the current IntegraTec businesses,” Davis says.
“Paraplanning Professionals also have a blue chip client base, with national cross sell possibilities. It is a solid business with solid revenue,” he says.
Davis says the plans and services the Paraplanning Professional group made before the acquisition will not change, but instead be enhanced and the “essence of the business will remain.”
The acquisition of Paraplanning Professionals is the latest for Tribeca Corporation with the company purchasing the compliance business THP Services last February, now operating as Integratec Compliance, and IntegraTec Training in September 2000.
However, according to Davis, Tribeca Corporation is far from fulfilling its acquisition quota.
“We are currently speaking with other providers, and are also developing new business divisions within the group,” he says.
