- Fiducian Group has completed the acquisition of PCCU’s financial planning business announced in November 2021.
- The acquisition increases the Funds under Advice in Fiducian Financial Services by AU$1.1 billion to AU$4.8 billion.
- FID has expanded its footprints across South Australia and the Northern Territory through this acquisition.
End-to-end financial services company Fiducian Group Limited (ASX:FID) in early November 2021, FID was selected as the successful bidder to acquire the financial planning business of People’s Choice Credit Union (PCCU), on 1 February 2022, the Company announced to the exchange that it has concluded this acquisition.
The acquisition comes in continuation to FID’s strategy to develop its quality financial planning network across South Australia. Moreover, the acquisition also increases the Funds under Advice in Fiducian Financial Services by AU$1.1 billion to AU$5.0 billion.
Fiducian has been witnessing continuous growth over the past 25 years. The Company has focused on establishing a business with a solid foundation and developing growth strategies that can be scaled up on current capacity.
FID has come a long way, with significant milestones being achieved during this journey. The Company has completed various acquisitions and scaled with a strong focus on cost and operational efficiency.
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The PCCU’s financial planning business offers financial advice to more than 390,000 members. As per the terms decided in November 2021, FID was supposed to make a payment of AU$12.6 million for the acquisition from internal cash resources, with 70% being upfront and the remaining after 12 months for a recurring revenue of AU$7.6 million.
The tireless efforts of the staff from both FID and PCCU has resulted in the smooth transition of the operations between the two businesses. This has ensured that the service offered to the clients remains unimpacted by the transaction.
This acquisition increases the distribution footprint of Fiducian across South Australia and the Northern Territory. Moreover, FID believes that the acquisition demonstrates the expertise, technology systems, client-centric processes and proven skills of FID’s financial planning network developed over the past two and a half decades.
FID shares were trading at AU$7.750 up 1.3% on 02 February 2022.