A subsidiary of ASX-listed accounting firm Kelly+Partners has made a tuck-in acquisition of a financial services group on the New South Wales Central Coast.
The subsidiary will acquire a 51% stake in the group which includes private wealth management, life insurance broking, finance broking and accounting and tax.
The transaction will cost $3 million with a 40% retention payment due in two years and worth $1.2 million.
It is expected to contribute up to $3 million in annual recurring revenue and is expected to be completed by 1 April 2021.
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Kelly Partners Central Coast will acquire the full fee base from the accounting and tax business with the acquiring businesses relocating to the office in Erina, New South Wales.
Kelly Partners chief executive Brett Kelly said the acquisition will transform the Central Coast office into one of the largest accounting and services provider in the region.
"We are pursuing a focused strategy of building each of our locations to a size that dominates their local region and would have each of them quality in their own right as top 100 accounting firms by size," he said.
"We believe that this scale in each location makes our businesses more competitive and sustainable, and more attractive to clients as well as talent."
The acquisition marks the 10th acquisition since the company's listing in 2017 and is the third acquisition for the financial year.
In December 2019, Kelly+Partners partnered with Austbrokers to set up a new partnership called Austbrokers Kelly+Partners.
The operation allows both groups to share expertise such as Austbrokers' general and life insurance broking and accounting and tax services from Kelly+Partners.