Easton Investments acquires accounting practice
Easton Investments has acquired accounting practice Hayes Knight NSW and will take a stake in SMSF business Superssentials Administration Services.
Easton Investments Limited announced last week it has entered into an in-principle agreement to purchase accounting practice Hayes Knight NSW and its related entities as part of a $13.11 million transaction.
The transaction will see Easton Investments acquire a 30 per cent interest in Hayes Knight NSW, along with 100 per cent stakes in Hayes Knight NSW's accounting support business Knowledge Shop and financial services firm Merit Wealth Limited.
Easton Investments will take a 50 per cent interest in SMSF administration and audit business Superssentials Administration Services.
According to Easton Investments, all of the acquisition businesses are inter-connected and have been progressively developed under a deliberate distribution strategy.
Easton Investments expects to enter into legally binding documentation with vendors who are part of the transaction within the next two weeks.
The transaction includes the purchase of the acquisition businesses for an up-front consideration of $10.86 million along with an earn-out consideration of up to $2.25 million which will be paid out over three years.
The up-front consideration will consist of $3.11 million in cash and $7.75 million of Easton shares comprising of 43 million shares at an issue price of 18 cents a share.
This represents an interest in Easton of 30.9 per cent of post-completion capital.
Easton Investments Kevin White said the transaction is a key part of achieving the company’s strategy of creating a significant distribution capability in the Australian accounting and financial and services industry.
Hayes Knight chief executive Greg Hayes will become joint managing director of Easton.
Mr Hayes said it was the right time and opportunity to position the business units for the future.
“The cultural fit is right and allows us to be a part of the growth and development of what we expect to be a significant player in the accounting profession and professional services sector,” said Mr Hayes.
He said as a major shareholder in Easton, Hayes Knight NSW and its related entities will be active in its growth and development.