Firstfolio has entered into advanced talks with a view to acquiring NSW-based Domain Financial Services (Domain), and its $1 billion mortgage-managed loan portfolio.
The acquisition will be subject to a 45-day period of exclusive negotiations, during which Firstfolio will conduct due diligence of the portfolio.
If successful, the acquisition would lift the total value of Firstfolio's mortgage loan portfolio under management to over $11.5 billion.
Firstfolio chief executive Mark Forsyth said the deal would strengthen Firstfolio's Sydney presence, add scale to its loan book and introduce new borrowers and intermediaries to the group's 800-member intermediary network.
Domain chief executive Mark Moenting would join Firstfolio as head of wholesale services.
"Domain has achieved a great deal of success over the past decade. Becoming part of the Firstfolio network is the next step in our evolution," Moenting said.
Established in 1997, Domain manages over 6000 mortgages.
Final terms of consideration will be announced within 45 days, though according to Forsyth, a lot of the work has already been done, so he is expects it to be more like 15 days.
This announcement comes after a series of strategic acquisitions and partnerships completed over the last 2 years.
This includes yesterday's announcement of Firstfolio's intention to acquire 100 percent of online mortgage broking platform, eChoice.
