Count adds accounting client books

In a statement to the ASX on Wednesday, Count announced that it had, through its equity partner firm Bruce Edmunds & Associates, purchased the accounting client book of May Klye & Associates.

Based in Melbourne, May Klye is a longstanding financial services practice with accounting and bookkeeping revenues of $1.2 million.

The deal is worth a total of $1.4 million, with 75 per cent payable on completion and the remainder deferred for 12 months subject to achieving revenue targets.

Count chief executive Hugh Humphrey said the deal would create scale benefits for Bruce Edmunds, of which Count currently owns a 40 per cent equity stake.

"Count continues to invest in quality businesses that expand our client base and accounting revenues as a result,” Mr Humphrey said.

“May Klye’s clients will benefit from the significant experience and knowledge we have within Bruce Edmunds, a business that was founded in 1966 and has a proven track record of delivering exceptional client outcomes.”

Last week, Count also purchased the accounting client book of Business Accounting Melbourne. The deal was completed through Count’s Victorian subsidiary firm Kidmans Partners.

Business Accounting Melbourne specialises in the automation and implementation of systems and technologies to streamline all accounting and bookkeeping processes and has accounting revenues of around $0.85 million.

Count said the deal is worth $0.76 million, with 65 per cent payable on completion and the remainder deferred over two years.

“This transaction is further evidence of Count’s growth strategy which will expand Kidmans’ client base and associated accounting revenues,” Mr Humphrey said.

“Kidmans is a successful and established financial services business in Melbourne and the clients of Business Accounting Melbourne will benefit from their expertise, experience and client-first approach.”

Count currently holds around 64 per cent shareholding in Kidmans.

The deals come on the back of Diverger shareholders giving a greenlight to the Count merger last month.

Last year, in announcing that it had entered into a binding scheme implementation agreement to acquire the entirety of Diverger’s shares, Count Limited said that one of the notable benefits of the acquisition is a 53 per cent increase in its adviser count.

Specifically, at the time, Count said it had 379 financial advisers under its roof, while Diverger would bring an additional 200 into the fold.

This substantial growth in scale within its wealth division played a pivotal role in the firm’s decision to pursue the acquisition, it said at the time.