MMC Contrarian (MMA) has signed a business sale agreement with Tolhurst Group (Tolhurst) to purchase its advisory business unit, Community & Corporate Financial Services (ComCorp).
The listed financial services firm will purchase the business for a consideration of $8.455 million.
The acquisition of Comcorp is MMA's first step in developing a presence in the financial advice sector, MMA managing director Alex Hutchison said.
"ComCorp is an established provider of financial planning advice to member-based organisations, particularly credit unions, representing approximately 800,000 members Australia-wide," Hutchinson said.
The decision to sell ComCorp was promoted by a change of strategy by the Tolhurst board, Tolhurst executive chairman David Browne said.
"In terms of the consolidation of the share broking industry ... there is a significant opportunity for both MMA to both support and build the current member-based organisations of ComCorp and provide further opportunities to the staff within ComCorp," Browne said.
The sale is subject to a number of factors including the transfer of at least $800 million of funds under management and the transfer of key assets and employees to MMA.
The signing of the business sales agreement provides certainty to both clients and staff of ComCorp, ComCorp managing director Allyn Chant said.
Tolhurst purchased ComCorp in 2007.
