Superannuation administration firm Tranzact Financial Services has purchased a controlling interest in Total Super, a specialised provider of self-managed super fund (SMSF) administration and compliance.
Tranzact now owns 60 per cent of Total Super however consideration for the deal was not disclosed.
The main reason behind the acquisition was to give Tranzact the necessary scale it needed to service the SMSF market properly according to Tranzact managing director Allan Yeo.
"Now we've got scale. Previously the Tranzact offering didn't have many funds, just over 100, and now we've got over 1000. That gives us enough scale to grow the business," he said.
The agreement also means clients of Total Super can now be offered a comprehensive range of services for their SMSFs.
"We can provide advice for SMSFs if required. We can also do the full administration package, and we can hold assets in custody if the client so wishes. So pretty much anything that anyone wants to do in that space we can do," Yeo said.
While Trazact has expressed interest in making a full acquisition of Total Super it has not held any negotiations with minority shareholder yet to facilitate this objective.
"We're comfortable if minorities want to stay involved, but we will look to buy them out at a price that makes sense to us and a price that makes sense to them," Yeo said.
Subsequent to the deal Tranzact will not be purposefully looking for any additional acquisitions in the SMSF space.
"We think this acquisition has given us sufficient scale with the levels of our business. We'd certainly be interested in opportunities as and when they arrive but we're not going to be actively seeking any more," Yeo concluded.
