Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary.
In a statement to the ASX, the firm said it will sell it to ASX-listed capital markets company Powerhouse Ventures.
The deal will see Sequoia continue to distribute Informed Investor’s content and Powerhouse Ventures become a client of Share Café and Finance News Network for production and distribution of video content for its platform.
“Sequoia Financial Group announces the sale of its Informed Investor subsidiary to Powerhouse Ventures for 2.000,000 shares in Powerhouse Ventures, which Sequoia has agreed to voluntarily escrow for 12 months as a commitment to the partnership.”
Powerhouse Ventures intends to rebrand the Informed Investor website to create a “professional, high conviction investment communication platform” which can leverage off the existing relationships it has to clearly articulate investment opportunities for its clients.
Sequoia first acquired Informed Investor back in April 2022 as well as financial news website ShareCafe and Corporate Connect Research. The firm said at the time the acquisition “increases the scale of our direct division and specifically enhances aspects of our media, research, adviser support and technology platforms”.
However, the integration of the three companies took “longer than anticipated” and caused “short-term pain to its bottom line”. The delays caused Sequoia’s Direct Division to fall short of the EBITDA budget by $500,000, it said.
As a result, Sequoia sued Tim McGowen for damages in February regarding the acquisition which was resolved in August 2024.
“Sequoia Financial Group Ltd is pleased to announce that the dispute with Mr Tim McGowen relating to the purchase of the issued share capital in Informed Investor, ShareCafe and Corporate Connect Research has been resolved by the parties.
“The terms of settlement, which are confidential between the parties, were made without admission of liability by either party and concludes the matter.”
