Clime to divest Madison in $2m sale

Clime Annick Donat InFocus AFSL licensees

27 May 2024
| By Laura Dew |
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Clime has entered into a heads of agreement to divest Madison Financial Group and WealthPortal to rival licensee Infocus. 

The firm said there is “cultural alignment” with Infocus which will ensure a smooth transition for advisers.

Following the divestment, Clime will streamline its operations to focus on funds management and private wealth. 

“In combination with the cost initiatives already enacted, the divestment of Madison positions the company for profit improvement in FY25. This strategic move enables Clime to concentrate on its core asset management and private wealth capability, which currently exceeds $1.3 billion in funds under management and advice,” Clime said in an ASX statement.

Meanwhile, Infocus will grow to 200 advisers and $16 billion in funds under advice, making it the 12th-largest licensee.

“Clime and Infocus will benefit from a strategic relationship in addition to the transaction, with opportunities to leverage the Infocus dealer-to-dealer services, while diversifying distribution through the integration of Clime products into the Infocus proprietary platform.”

The headline purchase price for the acquisition of the group is $2 million and will be paid in the form of convertible loan notes issued by Infocus.

The deal is expected to be completed by the end of the financial year subject to due diligence.

Clime chief executive, Annick Donat, said: “Infocus will be excellent custodians of the Madison business. It is clear there is strong cultural and strategic alignment between the firms, and they have an outstanding track record of supporting financial advisers. 

"Clime will work closely with Infocus to ensure a seamless transition, including the use of the group’s dealer-to-dealer services, and longer term we will collaborate to drive mutual success and unlock further revenue opportunities.”

Infocus Wealth Management founder and managing director, Darren Steinhardt, said: “Infocus is an ideal home for the Madison group and we’re looking forward to welcoming the advisers to our fold. 

“Infocus will be a home where the Madison group can integrate into a strong community, benefit from an outstanding culture, and take advantage of industry leading hands-on support and infrastructure to grow their advice businesses. Beyond the transaction, we are keen to build a strategic relationship with Clime, one that delivers meaningful value for all parties.” 

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