Prime acquires 100% ownership of Lincoln Indicators
| Stock | Prime Financial Group Ltd (PFG.ASX) |
|---|---|
| Release Time | 22 Apr 2025, 8:28 a.m. |
| Price Sensitive | Yes |
Prime acquires 100% of Lincoln Indicators
- Prime to acquire leading Australian investment research, portfolio, platform and funds management business, Lincoln Indicators
- Acquisition expands Prime's Wealth offering and significantly increases its distribution capability
- Lincoln Indicators has a favourable financial profile with anticipated future revenue of $10M - $11M annually
Prime Financial Group Limited ('Prime' or 'PFG') has entered into binding agreements to acquire 100% of Lincoln Indicators Pty Ltd ('Lincoln Indicators'), together with the associated intellectual property that is held by a related entity. Lincoln Indicators is a leading Australian investment research, portfolio, platform and funds management business located in Melbourne, Australia. The acquisition further expands Prime's Wealth offering and significantly increases its distribution capability, including access to a further 3,300 high-net-worth investors, a 10x increase. The acquisition delivers on Prime's strategy of growth through complementary and EPS-accretive acquisitions that increase customer diversification and recurring revenue with significant cross-sell opportunities into the wider group. Lincoln Indicators has a favourable financial profile and will represent a small contribution to revenue in FY25: anticipated future revenue is $10M - $11M annually. The total consideration of $15.75M for on target EBITDA performance, or potentially $17.9M if earnings targets are outperformed, will be payable in an approximate mix of 80% cash and 20% shares with payments to be made over a 3-year period. The cash consideration for the acquisition will be funded from the Company's operating cashflow, debt facilities and cash reserves.
Lincoln Indicators has an anticipated future revenue of $10M - $11M annually.
The acquisition of Lincoln Indicators expands Prime's Wealth offering and significantly increases its distribution capability, including access to a further 3,300 high-net-worth investors. The transaction provides Prime with additional tools and services for the high-net-worth and wholesale investor market and complements its existing Wealth business, providing significant synergies and cross-sell opportunities.