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EQT updates on Australian Executor Trustees acquisition

EQT Holdings has confirmed it has completed of one of two key strategies to achieve synergies when it acquired Australian Executor Trustees (AET).

At the time of acquisition, Equity Trustees announced its intention to exit the AET platform business and outsource the administration of the Small APRA Funds (SAFs) business - a portfolio of more than 400 funds and $600 million of assets.

EQT said the changes were a critical driver of achieving the previously announced $2.9 million net expense synergy. It has now confirmed that the transition of the SAF administration was completed on June 3, with SuperConcepts the new administrator for the funds.

EQT said it remains as the trustee for the funds through its RSE Licensee held by subsidiary Equity Trustees Superannuation Limited (ETSL).

In addition, EQT said the exit of the platform business will be achieves through a progressive wind down which is said is "well advanced".

EQT now expects to achieve a net cost synergy of the originally estimated $3.5 million per annum.

It said this would be achieved as a run rate in FY25.

"We confirm the previously announced expected revenue synergy of $5.8 million per annum run rate in FY25, capital release of $10 million expected by the end of the calendar year contingent on court approval and within the implementation budget of $22 million," it said in an announcement.

EQT confirmed it would be acquiring AET from Insignia Financial back in August 2022 for $135 million.

EQT said the acquisition would deliver significant growth for the company, adding $5.4 billion in funds under management and boosting overall revenue and earning before interest, tax, depreciation and amortisation by more than a third.

The acquisition was funded through a combination of both debt and equity.

Read more: AETAustralian Executor TrusteesEQT HoldingsEquity Trustees Superannuation LimitedInsignia FinancialSuperConcepts