PIS poised to make big US push

Professional Investment Services (PIS) has confirmed it is in negotiations to buy a US-based financial planning group, in a move that could result in Australia’s second largest dealer group having a bigger presence in America than it does at home.

Chief executive Robbie Bennetts said PIS had signed a deed of agreement to conduct due diligence on the financial planning and risk insurance arm of a major institution listed on the New York Stock Exchange.

While the identity of the group has not been disclosed, Bennetts said the business was sizeable.

“It is probably bigger than we are in Australia,” he said.

PIS has 1,194 advisers in Australia.

Bennetts did not disclose the terms of the deal, but said PIS had amassed a $20 million war chest to spend on acquisitions.

“We’ve entered into a deed arrangement to conduct due diligence on their business. We have already agreed on what the pricing would be,” he said.

PIS has made no secret of plans to expand offshore.

The dealer group has fledgling offshore operations in Malaysia, Hong Kong, Singapore and New Zealand.

However, previous attempts to break into the potentially lucrative US market have been thwarted. In 2002, PIS’ attempt to buy 50 per cent of a US dealer group collapsed at the due diligence stage.

The moves offshore also follow news of PIS’ new planning venture in Australia. As reported by Money Management earlier this month, PIS has launched a new dealer, myblueprint, which will be promoted by entertainer Kerri-Anne Kennerley.