Listed advice network to purchase rival dealer groups

In a statement to the market on Wednesday, Centrepoint Alliance said it would purchase the advice business of Clearview Wealth for $15.2 million, including the Clearview and Matrix dealer groups.

The purchase will be financed by the issue of $12 million in escrowed Centrepoint shares and a cash consideration of $3.2 million, with ClearView to become a 25% shareholder in Centrepoint.

“This transaction represents the next phase of Centrepoint Alliance’s growth by providing immediate scale and will increase the business’s long-term value and profitability,’ said Centrepoint CEO John Shuttleworth.

The news was announced as part of Centrepoint's full-year results, which saw the advice group record a net profit after tax of $1.8 million.

More to come.