PFG settles one acquisition and implements another

Accounting and wealth management firm Prime Financial Group (PFG) has flagged a potential acquisition of Melbourne-based investment research and portfolio management firm after completing its acquisition of Equity Plan Management (EPM).

PFG announced the acquisition at the same time it said it had raised $3.3 million in a fully underwritten, non-negotiable acquisition offer.

The company said the acquisition of EPM marks its entry into the compensation management and employee stock ownership plans sector.

In an announcement to the Australian Securities Exchange, it said PFG was continuing to work on a confidential, non-binding indicative offer “for the acquisition of a Melbourne-based company that provides investment research, portfolio and asset/fund management services”.

“The potential acquisition will complement Prime’s Wealth segment and provide it with operational, client and capability synergies,” the ASX announcement read.

The company said that if the acquisition is completed, it would be a material contributor to fiscal 2025 revenue, with fiscal 2024 revenue expected to be approximately $12 million.

Commenting on the acquisition of EPM, Prime CEO, Managing Director and Chairman of the Board, Simon Madder, said the acquisition provided the company with ownership of a leading Australian provider of employee share plan and compensation services, strong profitability and highly complementary product suites.

Pointing to the non-binding offer for the Wealth Management Business and recent management hires, he said it was a significant contribution to Prime’s strategy to pursue organic growth and acquisitions that add to earnings per share as it works towards a goal of doubling revenue from $26 million in fiscal 2022 to $50 million in fiscal 2025, and then doubling that again to $100 million.