AZ Next Generation Advisory, the Australian subsidiary of Italy’s Azimut, has signed a binding sale and purchase agreement to acquire the entire capital of Menico Tuck Parrish Financial Services (MTP).
The agreement includes a share swap of 49% of MTP’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years. The remaining 51% stake will be paid to the founding partners in cash over a period of two years.
The total value of the transaction considering both the cash and share swap entails a purchase price of around A$ 4.8m (equivalent to €3.3m). MTP operates under the Australian Financial Services License regime overseen by ASIC; the acquisition is not subject to the approval of the local authority.
MTP offers a suite of advisory services to clients in Australia including wealth accumulation, retirement planning, insurance, and strategic financial planning advice. The firm is led by Anthony Menico and Jo Tuck and is responsible for approximately $200m (€140mn) of client funds and comprises a team of 9 including 3 financial planners.
Sergio Albarelli, CEO of Azimut Holding, said: “We continue investing in our business plan in Australia, and MTP’s addition is another example of the strength and quality of financial planners we are attracting. We are confident we will deliver very strong growth throughout 2017 and beyond and, together with our partners, we are building a profitable and sizeable presence in Australia.”
This latest agreement follows the deals reached with Eureka Whittaker Macnaught, Pride Advice, Lifestyle Financial Planning Services, Financial Lifestyle Partners, Harvest Wealth, Wise Planners, RI Toowoomba, Empowered Financial Partners, Wealthwise, Priority Advisory Group, Sterling Planners, Logiro Unchartered Pty Ltd and On-Track Financial Solutions and is a continuation of AZ NGA’s objective of consolidating Australian financial practices providing wealth management services to retail, HNW and institutional clients in Australia.
AZ NGA was established in November 2014 and is part of Azimut Group, Italy’s independent asset manager, established in 1989 and today operating in 16 countries with more than €46bn (A$67 billion) in AuM at the end of April 2017.