Listed financial advisory firm Snowball Group (Snowball) is close to finalising a number of acquisitions including a servicing arrangement with a $20 million corporate super fund.
Snowball managing director Tony McDonald said the group has entered into an agreement to purchase a Sydney-based financial planning business with $120 million in funds under advice (FUA).
McDonald could not reveal the name of the financial planning group, stating an announcement would be made after discussions with the group and customers were finalised.
"We have entered into a binding heads of agreement. From our point of view what we are acquiring is complementary to us - it fits the family photo," he said.
"The complementary nature of it is that it's up on the north shore and services the central coast. That's an area that we've been looking at for some time, and the advisers involved fit the family photo with quality, integrity. So it was one of those acquisitions that we looked for and it measures up to our criteria."
McDonald said the transaction is budgeted to deliver Snowball an additional earnings before interest, tax, depreciation and amortisation (EBITDA) of more than $500,000 in the first full year of integration.
Snowball is also in discussions with a number of affinity partners, and is in the final stages of signing with the undisclosed super fund, McDonald said.
"There are a handful of opportunities that we're looking at, which are at various stages. Nothing to announce at this juncture," he said.
"We recently took up the servicing arrangements for a $20 million corporate super fund."
In the 2007 financial year, Snowball's FUA doubled and the pro-forma EBITA rose by 32 per cent.
Since 2003 the company's FUA has grown from just over $500 million to $4.2 billion at the end of 2007.
