Challenger intends to work with Bendzulla to expand its service offerings to SMSF customers and their accountants, according to a statement released on the ASX yesterday.
Bendzulla is a strategic investment for our company in terms of SMSF retiree research, product and service development and distribution, said Challenger's chief executive officer, Brian Benari.
Bendzulla Actuarial is a provider of SMSF actuarial certificates, with a market share of more than 50 per cent serviced through relationships with approximately 5,500 accounting firms.
Employing 23 people, Bendzulla will remain headquartered in Hobart, operating as a wholly-owned subsidiary. Chief executive Tracy Williams will report to Challenger’s chief executive of distribution, product and marketing, Paul Rogan.
Challenger's $25 million acquisition of Bendzulla Actuarial is earnings accretive, meets the required 18 per cent pre-tax ROE hurdle, and will be funded from cash reserves, the ASX release said.
The acquisition is scheduled to complete in January 2014.