Australian Finance Group
Acquisition of a 75% stake in Fintelligence for A$52.5m
On 30 November 2021 Australian Finance Group (“AFG”) announced the acquisition of a 75% stake in leading asset finance aggregator, National Finance Alliance Pty Ltd, trading as Fintelligence. The combined group will have more than 3,335 brokers and will deliver combined asset finance settlements of more than $1.7 billion per annum, based on combined, proforma results.
Under the transaction, Fintelligence will receive $52.5 million in cash upfront, funded primarily by a new corporate debt facility. AFG has an exclusive option to acquire the remaining 25% interest in Fintelligence over the next three and a half years with value linked to Fintelligence achieving agreed milestones. The transaction is expected to be EPS accretive (pre-synergies) in the first full year post integration and the proposed funding structure is expected to allow AFG to maintain its dividend policy.
The acquisition is subject to confirmatory conditions precedent, which AFG expects will be met in the ordinary course and is expected to complete by 31 December 2021.
AFG was established in 1994 and has grown to become one of Australia’s largest mortgage broking groups and leaders in financial solutions.
Azure acted as financial adviser to AFG including providing valuation, structuring, and strategic advice as well as support in negotiation of the relevant transaction agreements.