AUS
NZ
UK
CA
USA
IND
Highlights
- Prime targets high-net-worth market growth
- Acquisition brings $11m in recurring revenue
- Deal structured with cash-scrip mix over three years
Prime Financial Group (ASX:PFG) is strengthening its presence in the Australian wealth management space with a strategic acquisition of Lincoln Indicators, a well-established investment research, platform, and funds management business. The transaction includes associated intellectual property and is expected to significantly enhance Prime’s Wealth division and broaden its market reach.
This move positions Prime to better serve Australia’s expanding high-net-worth investor segment, which now includes approximately 690,000 individuals—a notable increase from 635,000 in the previous year. These investors collectively manage an estimated $3.4 trillion in investable assets, reflecting the sector's rising potential.
According to Prime’s chair Simon Madder, the acquisition aligns with the company’s strategy to scale its wealth services. He emphasized that Lincoln's established brand and loyal client base will complement Prime’s existing infrastructure. The integration brings with it tools and services tailored for high-net-worth and wholesale investors, offering both operational synergies and enhanced distribution capabilities.
The financial terms of the deal reflect a phased payment structure designed to align with performance. An initial consideration of up to $5 million includes a $4 million payment at completion and a further $1 million contingent on achieving cost-efficiency targets within 90 days. This is followed by up to $11.45 million in additional tranches over three years, subject to Lincoln meeting or exceeding EBITDA benchmarks. The final tranche, due on the third anniversary of the transaction, could reach $4.5 million if performance targets are surpassed.
Each payment tranche will be delivered with a minimum of 70% in cash and the remainder in Prime ordinary shares. These shares will be under a 12-month escrow period from the date of issuance. Prime will also pay $2.1 million over three years for intellectual property owned by a related party. Funding for the acquisition will be sourced from Prime’s operating cash flow, existing debt facilities, and cash reserves.
Lincoln Indicators currently serves approximately 3,300 high-net-worth investors and manages over $600 million in proprietary funds, along with offering a suite of investment research tools. The acquisition is expected to provide recurring annual revenue of around $11 million and contribute positively to Prime’s FY25 earnings.
Upon completion, Lincoln’s co-founder and managing director Tim Lincoln will join Prime’s Wealth leadership team, bringing continuity and expertise into the expanded business unit.
