- 600+ total advisers
- $16Bn+ funds under advice
- $360M+ in-force annual insurance premium
- $25M+ new insurance premium sales per annum
15 March 2022 – WT Financial Group Limited (ASX: WTL) (WTL) has announced the acquisition of high profile, non-institutionally-owned licensee, Synchron.
Synchron founders Don Trapnell and John Prossor will continue working in the business with Mr Trapnell assuming the role of chairman of WTL’s Synchron subsidiary.
The move follows WTL’s acquisition last year of the Sentry Group and continues the listed company’s growth strategy. The WTL adviser network, which also includes the licensee group, Wealth Today, will emerge with more than 600 advisers and increase funds under advice to in excess of $16Bn following the Acquisition.
The total vendor consideration for the Acquisition is up to $7.96M, payable over two years in a combination of cash and WTL shares, and subject to various terms and conditions.
WTL will assume liabilities of circa $3M and expects to incur transaction and integration costs of between $1-2M, bringing the anticipated total value of the Acquisition to $12-13M.
Synchron Director, Don Trapnell said, “Synchron has a long and proud history as a licensee that values its people. In the process we have built a strong, close community of advisers with a unique culture.”
Mr Trapnell said that WTL understands this culture and embraces the same values. “We thought very carefully about the cultural fit, and we are delighted that the Synchron we all know will continue,” he said.
“This is a pivotal moment in our history, one which will allow us to equip Synchron advisers for an exciting future in financial advice, while also positioning us for growth, and ongoing leadership of the industry as a licensee.”
The Synchron name will remain and all scheduled Synchron events will proceed as planned.
“As we move into a post-pandemic world, and new opportunities emerge, this is the right fit for Synchron, at the right time,” Mr Trapnell said.
WTL Managing Director, Keith Cullen, said the Acquisition cements WTL as the largest non-institutionally-owned, non-product-producing financial adviser network in Australia.
“It establishes the right scale of operations to enable us to provide the critical support that advisers in our modernised industry demand. The resulting scale will set the course for future expansion and more depth in our offerings for advisers,” he said.
“Thanks to the Acquisition structure, the Synchron founders will maintain investment exposure to Synchron by holding shares in WTL as we continue to advance as a leader in the Australian financial advice sector.”
Mr Cullen said WTL will be enhanced through the addition of Synchron’s state manager line, adding significant experience and resources to the broader group operations to support the Company’s advisers across its Wealth Today and Sentry groups.
Synchron’s NextGen program, which supports the professional development of younger advisers, will also be rolled out right across the group. The program has helped reduce the average age of Synchron advisers to 47.
“Synchron advisers will benefit from the rollout of WTL’s adviser education and training programs, its comprehensive practice management tools and programs, and its enhanced risk management framework,” Mr Cullen said.
With millennial inheritance from 2020-2040 forecast to reach $3,500Bn, superannuation assets expected to double by 2029, and the largest cohort ever to enter age care, Mr Cullen said demand for advice will continue to grow across Australia.
“The landscape within the financial advice sector has a strong outlook, and the synergies created from the Acquisition position us for further growth.”
About WT Financial Group Limited
WT Financial Group Limited has now established itself as the largest non-institutionally-owned, non-product-producing financial adviser network in Australia. Its advice and product offerings are delivered primarily through a group of financial advisers operating as authorised representatives under its Wealth Today, Sentry Group, and now Synchron subsidiaries. The Group’s B2C division delivers a range of services directly to wholesale and retail clients through the Spring Financial Group brand, encompassing financial planning, accounting and tax services, mortgage finance services, and investment and asset management. The Group offers market-leading financial education services for advisers and consumers through regular seminar programs and the publication of its Wealth Adviser Library of more than 100 financial literacy handbooks and manuals on a broad range of financial and investment market topics.