Publicly-listed mortgage and financial services group Yellow Brick Road (YBR) has confirmed its move to acquire the Macquarie Bank-related Vow Financial.
The company announced to the Australian Securities Exchange (ASX) today that it had entered into an implementation deed with Vow, which it described as a privately-owned mortgage aggregator.
Commenting on the move, YBR executive chairman Mark Bouris said the acquisition was consistent with the company's strategy of becoming a leader in the non-bank segment.
"Vow will provide YBR with a new national distribution channel and business model, with its current access to over 700 mortgage broker groups," he said.
The ASX announcement said that the Vow Board had unanimously resolved to recommend acceptance of the YBR offer, noting that Tim Brown, chief executive of Vow, and Macquarie Bank, the largest shareholder, had accepted their respective offers.
It said that, in aggregate, these acceptances amounted to approximately 40 per cent of Vow's issued capital.
