Interprac Securities is set to fully acquire two financial advice practices located in Melbourne and Hobart.
Interprac Securities will acquire Hobart-based FF Planning Solutions and Melbourne-based SFG Financial Services (not to be confused with Shadforth) by the end of this financial year.
It will pay a total consideration of $500,000 that comprises $150,000 of cash paid upfront.
The two firms are formerly authorised representatives of Interprac Financial Planning.
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Interprac head of advice and compliance Mike Butler told Financial Standard that the two practices used Interprac Financial Planning for their licensee services and the acquisition will see parent company Sequoia Financial Group own 100% of each firm.
Butler said the move expands on Sequoia's strategy to grow its own businesses and provide an exit point for retiring advisers and retain equity.
That way, clients can remain in the group and continue to receive advice and support from the group, he added.
Sequoia expects to generate $500,000 in annual recurring revenue from the acquisitions of the two firms and add $300,000 per annum to its earnings.
Former financial adviser David Horton, who previously worked at FF Planning Solutions, has been banned by ASIC from providing financial advice for five years.
ASIC found that he was not an authorised representative of FF Planning Solutions but still gave unlicensed advice to some clients.