Connie Mckeage
OneVue Holdings Limited (OneVue) yesterday announces the acquisition of 100% of Super Managers Australia Pty Ltd (SMA), expanding the Group’s superannuation capabilities further into the fast growing superannuation administration sector.
SMA has longstanding administration clients with FUA in excess of $1.1 billion and more than 22,000 members are currently administered on the service.
OneVue Group CEO Connie Mckeage said, “This acquisition will complement OneVue’s existing superannuation services. We were able to complete a thorough due diligence exercise given we have been providing management services to SMA since May 2014. Under OneVue’s management, significant restructuring of the business has already been completed and the business now has a pipeline of potential new clients. The business is also already fully integrated with both OneVue’s digital direct service and the recently launched LUMINOUS adviser platform. Further cost synergies and opportunities across the Group remain to be captured.”
The total consideration of $5.2 million represents the acquisition of 100% of issued shares in SMA and assumption of external debt in the business of $3.6 million, as well as the previous loan funds of $1.5million provided to SMA Managers by OneVue. OneVue will complete the transaction with the use of a new debt facility providing a 4-year amortising structure.
SMA revenues for FY 16 are on track to be in excess $4 million and the transaction is expected to be EPS positive in FY 16.
SMA will be rebranded to OneVue Super Services to reflect its role within the OneVue Group.
Brief History of OneVue’s relationship with Super Managers
- In May 2014 OneVue took an option to acquire control of the business
- OneVue provided secured loans for $1.0m in May 2014 and $0.5m in August 2014
- OneVue commenced providing management services for the day to day operations of the business in May 2014
- Operation restructured by OneVue in December 2014
- Growth potential enhanced with integration into OneVue’s Platform Services
- Pipeline of new business evolves
Key Highlights:
- Super administration business with more than $1.1 billion in FUA & 22,000 members
- Revenues for FY 16 on track to exceed $4 million
- Positive EPS expected in FY 16
- Consideration of $5.2 million for 100% of shares
- Transaction funded by new debt facility
- Further cost synergies can be made
- Service already integrated into OneVue’s direct and LUMINOUS offerings
- To be renamed OneVue Super Services
The transaction is expected to be completed by 30 November 2015.