Hugh Humphrey
Count Limited (ASX: CUP) (Count) has announced the strategic acquisition of Diverger Limited (ASX: DVR) (Diverger), a leading provider of wealth, accounting and technology solutions to Australian accounting and financial advice professionals.
At completion, Count will represent a leading diversified financial services provider with total revenues of $132 million, Funds Under Management and Advice (FUMA) of $29 billion, around 550 advisers, 563 accountants and a significantly expanded Services segment. Hugh Humphrey, Chief Executive Officer at Count, said the transaction is a key milestone in Count’s growth strategy and an important step towards achieving the company’s ambition to be Australia’s leading provider of integrated accounting and wealth services.
“This is an exciting transaction that continues the disciplined execution of our growth strategy, bringing tangible benefits to Count and Diverger shareholders, our Member firms and their clients. Count and Diverger both have a deep heritage in accounting and financial advice, with complementary strengths that will position us as an industry leader.”
Diverger holds over $2.7 billion of investor assets in Diverger-managed portfolios. Count Member firms and clients will also have access to a range of new services and investment options currently offered by Diverger, including technical support, tax training and IT services.
Mr Humphrey added that the agreement underscored Count’s commitment to bringing high-quality, holistic financial advice to more Australians. “We believe every Australian should be able to access professional accounting and advice services from a trusted source, which in turn gives them the confidence to look ahead.”
Highlights of the transaction
- Count has identified approximately $3 million in cost synergies and a number of new revenue growth opportunities to be delivered through a rigorous integration and benefit.
- Count will benefit from a broader and more diversified shareholder base.
- The transaction is expected to deliver a material increase in scale and diversification of Count’s revenue and earnings as well as unlock incremental growth opportunities.
- This is a transformational acquisition between highly complementary businesses, which will create a leading integrated financial services provider.
- The Diverger Board has unanimously recommended that Diverger shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to the Independent Expert concluding that the Scheme is in the best interests of Diverger shareholders.
- Diverger’s major shareholder, HUB24, has issued a statement of support for the transaction, and in the absence of a superior proposal intends to vote all shares they control in favour of the transaction and to elect to receive maximum scrip consideration.
- The transaction values Diverger at A$45.3 million.
The transaction is expected to complete in early 2024.