Sequoia announces acquisition of three interrelated businesses

Sequoia Financial Group has announced the acquisition of three interrelated businesses – digital content platform Informed Investor, financial news website Sharecafe and Corporate Connect Research.

The total consideration is reported at $5.1 million with an initial payment of $3 million, made up of $1.1 million in cash and 2,720,723 Sequoia shares at $0.70 per share, as well as a deferred payment of another 3,128,831 shares to be issued after 28 February 2023.

The firm said the acquisition, which is expected to be completed on 1 April 2022, “increases the scale of our direct division and specifically enhances aspects of our media, research, adviser support and technology platforms”.

Sequoia said it will not only support its existing network of advisers, but also develop a digital content platform for all fund managers, ASX-listed companies and the broader financial services industry.

“It allows us to offer an AFSL holder a white labelled-approved product platform specific to their individual approved lists and bespoke requirements,” a statement released on Tuesday, 29 March read.

“The cost of providing advice has become a core issue for all licensees as demand increases and this will only continue with the tailwind of $3.5 trillion of intergenerational wealth expected to transfer over the next 25 years.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.