Listed advice group reveals expansion plans

In a statement to the market around its transaction with HUB24, Easton Investments chairman Kevin White said the new partnership would offer an opportunity for the group to “become a leader in licensee and adviser services ... to deliver efficient cost-effective solutions and services to advisers, accountants and their clients”.

The transaction, announced in October, would see Easton take ownership of HUB-owned licensee Paragem while the listed platform group would take a 40 per cent stake in Easton.

The company already has a significant stake in the advice market through its wealth arm, encompassing dealer groups Merit Wealth, GPS Wealth and the SMSF Expert, and is one of the top 10 groups by adviser numbers.

Mr White said the acquisition of Paragem was “a strong fit with Easton’s Wealth Solutions division, provides additional scale to support the development of technology to improve efficiencies and add new revenue generating services, and is consistent with Easton's strategic direction to become a leading non-institutional provider of adviser and licensee services”.

More broadly, he added that the tie-up with HUB24 was “aimed at accelerating growth opportunities, notably Easton’s plans to compete in the wealth training and continuing professional development market, as well as the potential to grow Easton’s adviser network”.

Further comments within its target statement ahead of the transaction noted that Easton was hoping to take advantage of current industry dynamics by leveraging the partnership with HUB24 to expand in the advice space.

“The current industry landscape, combined with Easton’s existing deep engagement with the accounting market, provides Easton with strong growth prospects as it partners with HUB24 to develop, deploy and distribute technology solutions focused on repositioning Easton with a competitive advantage in the delivery of efficient, cost-effective solutions and services to advisers, accountants and their clients,” the company said.

With the majority of authorised representatives of Easton dealer groups currently holding limited licenses, the transaction would allow the company to boost its financial planner numbers to approximately 250, with another 400 advisers on limited licence, Easton stated.

The HUB24 offer remained open to Easton shareholders until 22 February, the company said.