Stockbroking giant Tolhurst Group has snapped up large independent advisory business Community and Corporate Financial Services (ComCorp) in a $39 million deal.
Following the acquisition of the Brisbane-based business, Tolhurst will be a step closer to becoming a comprehensive financial services firm.
ComCorp has $1.7 billion of funds under advice. Revenue for the 2008 financial year is expected to top $12 million.
"The acquisition of ComCorp will be a transforming acquisition for Tolhurst not only enhancing earnings but increasing our distribution capability and changing the profile and certainty of our earnings," Tolhurst Group executive chairman David Browne said.
"It will also increase our opportunity to develop our own financial products and enhance our strategy of making Tolhurst a leading independent investment bank."
Tolhurst has stumped up cash for half the acquisition cost, with the remainder paid through the issue of shares in Tolhurst at an issue price of 50 cents.
ComCorp has offices throughout New South Wales, Victoria, Queensland and Western Australia. It is owned by directors, advisers and credit unions.
Its clients include 11 member-based organisations, including Prime Super and Qantas Staff Credit Union, with more than 600,000 members.
ComCorp executive vice chairman Allyn Chant will join the Tolhurst board on completion of the deal.
ComCorp and Tolhurst shareholders will vote on the deal. If all conditions are met, Tolhurst will take control on July 2007 and the transaction will be settled on July 31.
Tolhurst recently entered into an agreement to acquire corporate advisory and investment banking group InterFinancial Holdings.
