There's not been a great deal of movement in the MyState Limited (ASX: MYS) or Fiducian Group Ltd (ASX: FID) share prices after it was revealed today that Fiducian is to acquire MyState's retail financial planning business that has more than $340 million in funds under advice.
The purchase price is $3.5 million with the acquisition expected to be completed by June 30 2019 and to be earnings per share accretive to Fiducian Group.
According to the announcement, Fiducian already has $2.7 billion in funds under advice and more than 40 offices nationally as its acquisitive growth strategy of buying smaller financial planning businesses continues apace.
The group also confirmed that ongoing client referral agreements for different services between MyState and Fiducian will remain in place.
According to Google Finance, MyState is by far the larger of the two companies with a market valuation over $400 million. For the six months ending December 31 2018, MyState delivered a net profit of $14.4 million ,which was down 9% on the prior corresponding period.
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