Provisio deal to cost Rubik more than $3 million
Rubik will move to finalise its purchase of Provisio Technologies by the end of the month, with the final purchase price dependent on Provisio's earning across the 2013-2015 financial years. A minimum price of at least $3 million has been set.
Rubik announced in February it had signed a provisional agreement to acquire Provisio and announced today that the deal would be concluded by 30 June, with an upfront payment of $290,000 and 2.1 million shares in Rubik. This will be followed by a further $1.15 million, comprised of cash and 4.9 million shares, following Rubik's annual general meeting in November.
Further payments will be made in 2014 and 2015 based on Provisio's earnings before income tax, depreciation and amortisation (EBITDA), with Provisio's EBITDA for 2012 being $0.55 million and projected to be $1.6 million in 2013. Rubik will fund the acquisition using existing cash reserves and by issuing equity in the group.
Provisio has confirmed plans to offer its scaled advice platform to independent planners and advisers by providing free access to a limited number of planners before a wider rollout later in the year. The platform will also be integrated into Rubik's COIN software from the last quarter of this year.
AUTHOR
Jason Spits
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
