DKN Financial Group has made its first acquisition through equity partner UPA following the purchase of a Gold Coast-based accounting firm.
Accounting firm BGP has an annual turnover of $1 million and is led by former KPMG partner Pamela Munce.
UPA's acquisition of BGP is its first since DKN took an equity stake in the group in August this year. DKN owns a 30 per cent interest in UPA.
UPA's business model brings together accountants, solicitors, business brokers and financial planners into one business.
UPA is the first group within DKN's network to announce an acquisition since the listed financial services group bought Lonsdale Financial Group. DKN and Lonsdale, including Wrap Account, finalised their merger last month.
The combined transaction is worth approximately $114 million, and leaves DKN a market capitalisation of about $219 million. The combined group is expected to have a network of more than 300 planning practices. Its projected funds under advice is $9 billion in June 2008, including approximately $6.5 billion of BT Wrap.
If predictions are correct this figure will make DKN the largest distributor of BT Wrap outside of Westpac.
The acquisitions are expected to result in a combined group net profit after tax for the half year to June 2008 of $6.3 million.
