Clime buys Australian equities boutique
The directors of Clime Investment Management (Clime) have announced the acquisition of 100 per cent of CBG Asset Management, a Sydney-based Australian equities boutique with $130 million under management.
According to the company, the cost of the acquisition was $3,625,000 comprising $3,250,000 on completion and $375,000 in 12 months based on the fulfilment of certain warranties relating to FUM retention and delivery of agreed outcomes.
Also, the CBG balance sheet acquired by Clime included $500k in net cash and substantial franking credits.
Under the terms of a deal, CBG principal Ronni Chalmers and other senior staff would join the Clime’s team.
Clime’s chairman, Donald McLay, said: “This is the second in a number of positive announcements we expect to make as the strategies outlined at last year’s annual general meeting begin to be realised”.
“The acquisition is EPS accretive at an operating level before balance sheet items in a business where we understand the risks and can benefit from shared infrastructure,” he said.
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