AMP Limited announced it has agreed to sell 100 per cent of the SuperConcepts business to an experienced and well-regarded management team co-invested with Pemba Capital Partners (Pemba).
The transaction is aligned to AMP’s strategy and further simplifies its business, allowing it to focus on its core retail banking and wealth management businesses.
Upon completion, AMP will receive an upfront cash consideration of approximately $8 million, subject to typical post-completion adjustments.
The transaction is expected to result in an accounting loss on sale of approximately $7 million.
The management group purchasing SuperConcepts in conjunction with Pemba Capital Partners has deep experience in Australia’s SMSF administration and software sector, and includes Matthew Rowe, who will lead the SuperConcepts business following completion.
The transaction, which is targeted to complete by Q3 2023, allows SuperConcepts to operate under private ownership.
This new management group also sees the return of Brad Ackermann as Chief Operating Officer and the return of Andrew Row, Executive Director of Client Services.
“SuperConcepts has a long history in the SMSF market, originating from a collection of strong independent businesses to become a leader in the industry. This transaction supports the future growth of the business, with the new management team having a clear focus on continuing to improve outcomes for our clients,” said Grant Christensen, outgoing SuperConcepts Chief Executive Officer.
“We acknowledge AMP for supporting this natural transition for the SuperConcepts business, its clients, team, and partners,” said Mr Rowe.
“Our team will invest in the business and deliver technology-led solutions, great customer outcomes and seek to simplify SMSF to enable more Australians to control their super in Australia’s growing SMSF market.”
Mr Rowe brings a 20+ year track record of leading high-performing professional services firms. He has served as CEO and NED across ASX-listed and private companies, most recently as the Chief Executive Officer and Managing Director for listed accounting and financial planning firm CountPlus, as well as former Managing Director of Hood Sweeney, Australia’s 30th largest accounting firm. He has also served as former Chairman of the Financial Planning Association of Australia.
Mr Ackermann is a senior executive with over 20 years in software, 16 of which have been dedicated to the SMSF administration and technology platform space. His career spans several pivotal roles, including recently as Chief Technology Officer at foundU, previously Chief Technology Officer at SuperConcepts, and R&D Director at ASX-listed TechnologyOne.
Mr Row, has 20+ years’ experience in the SMSF industry across administration, actuarial and audit with a focus on technology, operations, and business process improvement. His roles have included former Joint Managing Director of Cavendish Superannuation (then-largest SMSF administration business in Australia, now part of SuperConcepts), former Managing Director of Bendzulla Actuarial, former Director of SMSF Integration with AMP SMSF, and Non-Executive Chairman of ASF Audits, Australia’s largest SMSF auditor.
More weasel words from AMP -The transaction is expected to result in an accounting loss on sale of approximately $7 million.
This current accounting loss is in addition to the $84m already written off.