a lot of aquisition here? 2 in a week....9/11/2004Tribeca to...

a lot of aquisition here? 2 in a week....



9/11/2004

Tribeca to acquire The Strategist Group


The directors of leading financial services education company, Tribeca Learning
Limited, are pleased to announce that the company has entered into an agreement to
acquire The Strategist Group Pty Ltd (TSG), a provider of specialist training and
compliance documentation to accountants and financial planners in the area of Self
Managed Superannuation Funds (SMSF).
Tribeca is currently undertaking a due diligence review of TSG under an exclusive
dealing period. Completion remains contingent on the satisfactory outcome of this
review and settling of acquisition documentation.
The Strategist Group offers a specialist SMSF education course, subscription-based
continuing education for SMSF specialists, an annual SMSF roadshow, and compliance
documentation that includes trust deeds and pension kits to assist advisers in
establishing and managing SMSFs for their clients.
Strong distribution arrangements have been established with financial planning and
accounting firms nationally, and with publisher CCH. Current year sales revenue is
projected to be approximately $2.25m.
The business was established by current managing director Grant Abbott in 1996 and is
based in Brookvale, Sydney. Mr Abbott will remain with the business for a minimum
period of four years.
The acquisition builds on Tribeca’s education presence within the accounting and
financial planning sectors, and provides access to new content and products relevant to
existing Tribeca and Webb Martin clients. Revenue growth will be driven primarily
through integration and cross-promotion. Given the scale of TSG’s operations, no cost
synergies are anticipated.
The purchase consideration is to consist of a guaranteed base amount and a capped
performance amount based on current year financial performance. The base amount of
$1.5m is be paid on completion, 25% of which will be satisfied through issue of ordinary
shares in Tribeca. The acquisition is expected to be earnings per share accretive in
current and future periods.
“Self managed superannuation is a rapidly growing advice area. The acquisition
provides a broad range of SMSF training and compliance products, building on existing
capabilities within the Tribeca and Webb Martin businesses”, said Tribeca’s chief
executive officer Adam Davis.
“My team and I are looking forward to working within the Tribeca group to enhance the
quality of SMSF offerings to our current clients”, said TSG’s Grant Abbott. “At the same
time, Tribeca and Webb Martin clients will have the opportunity to access quality SMSF
specialist training and compliance products. It will be business as usual from our end.”