The transaction from Kidmans Partners is part of the firm’s internal succession planning and is expected to be completed on 6 November 2019, CountPlus said in a statement to the ASX.
Consideration for the acquisition is $0.9 million with 70 per cent to be paid on completion and the balance over two deferred payments.
Kidmans, a 67 per cent subsidiary of CountPlus, will fund the acquisition through a combination of cash and external debt, with the transaction expected to be earnings accretive within the first year.
The current managing principal of Latitude Advisory Services, Rod Geilman, will become a principal and shareholder of Kidmans on completion of the acquisition.
It is also intended that all clients of Latitude Advisory Services will become clients of Kidmans.
CountPlus chief executive Matthew Rowe said the transaction highlights the focus of the company’s M&A process.
“The CountPlus model works on identifying and investing in quality people and businesses and this acquisition by Kidmans reflects that model,” Mr Rowe said.
Kidmans managing principal Ross Hedrick said its due diligence revealed Latitude Advisory Services as a “quality strategic fit”, with “strong cultural values that place the client’s interests foremost as its fundamental business purpose”.
