WT completes acquisition of Millennium3

WT Financial Group has completed its previously announced acquisition of Millennium3 from Insignia Financial. It took ownership of 100 per cent of the issued capital of Millennium3 and funded the acquisition entirely through cash at hand.

The addition of the Millennium3 network to WT Financial will bring in around 140 wealth and personal risk insurance advisers from more than 75 privately owned practices across Australia.

The Millennium3 network would also boost WT Financial’s funds under administration by around $5 billion to a total of $23 billion, while also adding $150 million of in-force risk insurance premiums for a total of $470 million.

The firm also called the acquisition “highly synergistic and accretive to earnings”, citing modelling that predicted, once fully integrated into its operations, the acquisition would contribute more than $50 million of revenue, $4.5 million of gross profit, and more than $500,000 of NPBT to the group on an annualised basis.

“The acquisition further cements WTL as amongst the very largest financial adviser networks in Australia,” said WT Financial chief executive Keith Cullen.

“We’re delighted to welcome the M3 cohort of practitioners and their support teams to WTL where they’ll find an ideal home – one where we know they can and will flourish at this time of unprecedented opportunity for advice professionals and advice network operators alike”.

The deal was first announced in November, with Mr Cullen saying that there would be a relatively seamless transition and minimal disruption for Millennium3 advisers and their clients.

“The M3 fee structure closely aligns with the structures we operate across our existing cohorts on a net per practice and per adviser basis,” he said at the time.

“Additionally, it includes a variable fee component, aligning our interests in helping practices grow their own revenue and profitability, which is our core focus at a time of unprecedented opportunity for advice professionals and advice network operators alike.”

Commenting on the sale in November, Insignia Financial CEO Renato Mota said: “The sale of M3 marks another important milestone as we execute our strategy, creating a simpler, more sustainable advice offering, enabling greater growth focus for the future.

“WTL is highly aligned, has a longstanding working relationship with Insignia Financial and the sale is expected to result in positive outcomes for M3’s advice practices and their clients.

“Our advice strategy will enable us to focus on the growth of our Professional Services Advice businesses, Shadforth Financial Group and Bridges Financial Services, expanding the scope of advice through superannuation, and to leverage future opportunities presented by the government’s response to the Quality of Advice Review.”