Piper Alderman advised People’s Choice Credit Union on the sale of its financial planning business to Fiducian Group Limited.
Fiducian Financial Services (FFS), financial planning subsidiary of Fiducian Group Limited (ASX:FID) was selected by the People’s Choice Credit Union (PCCU) as the successful bidder to acquire PCCU’s financial planning business, which provides financial advice to a selection of PCCU’s 390,000+ members.
Fiducian will pay $12.6 million from internal cash resources with 70% being up front and the rest after 12 months for a recurring revenue of $7.6 million. Another one off payment of up to $600,000 will be made subject to an additional $2 million being received in the first year as up front and/or ad hoc advice revenue.
The acquisition by Fiducian (ASX:FID) is a continuation of its strategy to expand its quality financial planning network throughout South Australia and lifts Funds under Advice in Fiducian Financial Services by $1.1 billion to $5.0 billion. Total Funds under Management, Administration & Advice (FUMAA) currently is $11.2 billion and post-acquisition will increase to $12.3 billion.
People’s Choice Credit Union is an Australian credit union, offering loans, credit cards, transaction and savings accounts, financial advice and insurance.
The Fiducian Group is a specialist financial services organisation providing funds management, superannuation, investments, financial planning, platform administration and planner software.
The Piper Alderman team was led by James Dickson (Picture) and Liam Higgins.
Law Firms: Piper Alderman;
Clients: People’s Choice Credit Union;