New wealth giant formed following WT's acquisition of Synchron

Wealth manager WT Financial Group (WTL) announced on Tuesday the acquisition of non-institutionally-owned licensee Synchron, a move that will see it become the largest non-institutionally-owned financial adviser network in the country. 

The combined group will boast more than 600 advisers and funds under advice in excess of $16 billion following the acquisition.

The move follows WTL’s acquisition last year of the Sentry Group and continues the listed company’s growth strategy.

WTL will cash out $7.96 million payable over two years in a combination of cash and WTL shares. The wealth manager will, however, assume liabilities of circa $3 million and expects to incur transaction and integration costs of between $1-2 million, bringing the anticipated total value of the acquisition to $12-13 million.

Synchron founders Don Trapnell and John Prossor will continue working in the business, with Mr Trapnell set to assume the role of chairman of WTL’s Synchron subsidiary.

“Synchron has a long and proud history as a licensee that values its people. In the process we have built a strong, close community of advisers with a unique culture," said Mr Trapnell.

“This is a pivotal moment in our history, one which will allow us to equip Synchron advisers for an exciting future in financial advice, while also positioning us for growth, and ongoing leadership of the industry as a licensee.” 

More focus on advisers

WTL's leadership believes the acquisition will set the course for future expansion and allow for more comprehensive offerings for advisers.

“Thanks to the acquisition structure, the Synchron founders will maintain investment exposure to Synchron by holding shares in WTL as we continue to advance as a leader in the Australian financial advice sector," said WTL managing director, Keith Cullen.

He said the addition of Synchron’s state manager line will provide significant experience and resources to the broader group to support the company’s advisers across its Wealth Today and Sentry groups. 

Mr Cullen also announced the role out of the Synchron’s NextGen program with the aim to support the professional development of younger advisers.

“Synchron advisers will benefit from the rollout of WTL’s adviser education and training programs, its comprehensive practice management tools and programs, and its enhanced risk management framework," he said.

“The landscape within the financial advice sector has a strong outlook, and the synergies created from the Acquisition position us for further growth.”