AWI looks to expand its self-directed investor services
Australasian Wealth Investments (AWI) has entered into a heads of agreement to buy an online business that provides financial services and products to self-directed investors.
The purchase of the Australian-based online portal involves a cash payment of $10.5 million plus $2 million of AWI shares and is dependent on a due diligence process by AWI, expected to settle on 13 December 2013.
In its release to the Australian Securities Exchange, AWI stated that it has received limited information from the vendor and may terminate due diligence at any time. In the event that the transaction does not go ahead, the vendor will pay AWI a break fee of $30,000.
According to AWI, the online business has revenues of $5.2 million, funds under administration (FUA) of $915 million and more than 16,000 invested clients.
Upon completion of the transaction, AWI will own two online self-directed financial services portals with combined FUA of approximately $1.6 billion and over 40,000 invested clients.
AWI expects to use the proceeds of its current rights issue to settle the acquisition, if the due diligence proves successful.
AUTHOR
Staff Writer
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