Publicly-listed accounting and financial planning group, Countplus has furthered leveraged its scale strategy with the merger of two of its accounting firms.
The company announced to the Australian Securities Exchange (ASX) that its member accounting firm, Cooper Reeves would merge with another accounting firm, 4Front Holdings in a move that would see revenue double to around $9 million with the number of team members increasing from 26 to 53.
The ASX announcement said the effect of the merger would be that CountPlus would sell its shares in Cooper Reeves in exchange for newly-issued shares in 4Front with the combined firm being rebranded as 4Front.
Under the arrangement, 4Front’s Drue Schofield would be appointed managing director while Cooper Reeves managing principal, Christine Robinson would become chief operating officer.
Countplus currently owns 100% of Cooper Reeves and would retain at least 51% of the merged entity with six key members of the two firms holding the remaining equity.
The transaction is part of the Countplus Owner/Driver-partner strategy.