Bell Financial Group (BFG) has signed a heads of agreement to acquire Southern Cross Equities (SCE).
In a transaction that will create one of Australia's largest independent broking houses, the total purchase price is expected to be approximately $150 million.
The total consideration is 50 per cent BFG shares and 50 per cent cash, payable in four instalments over three years, with the first instalment due upon completion of the acquisition.
The equity portion of the consideration will be issued at $1.25 per share.
The cash portion of the transaction is expected to be financed from existing cash and future cash flows.
The purchase is subject to the approval of BFG's shareholders and is expected to be completed by mid-September.
The acquisition will provide BFG with immediate access to a significantly expanded product range and research base, BFG executive chairman Colin Bell said.
"This is a tremendous opportunity for both companies to leverage off each other's expertise to provide exceptional service to clients," he said.
Joining two complementary businesses in a time of market dislocation creates several timely opportunities to expand both businesses, according to SCE executive chairman Brent Potts.
"Access to BFG's comprehensive client base provides us with a significant distribution platform for all of the major Australian capital raisings in the years ahead," he said.
"Also, for some time we have been planning for growth beyond the domestic market and the transaction will accelerate that process."
