Clime Investment Management Limited (ASX: CIW) is pleased to announce signing of an agreement to acquire the Madison Financial Group (MFG).  MFG provides licensing, compliance, technology and support to approx. 100 financial advisory firms licensed under its Australian Financial Services License.  Collectively, MFG has around $3Bn in funds under advice and total in-force insurance premiums of $65m, with total gross annual revenue around $34m.

Clime CEO Rod Bristow said, “We are delighted the MFG staff team and community of outstanding financial advisers will become part of Clime’s story of expanding our financial services offering.  Clime is consciously ‘running against the grain’ of the rest of the industry by investing in financial advice given our strong belief in quality advice as a way to change people’s lives for the better”.

“The wealth management sector in general has had a tumultuous few years and we look forward to supporting MFG’s adviser community with stability, efficiency gains and growth opportunities aligned to Clime’s values of Integrity, Transparency and Conviction”, he said.

To fund the acquisition, Clime has successfully completed a $4.5 million institutional placement at an issue price of $0.46 per share, a premium of 8.2% to the last traded share price.  The placement closed fully subscribed within a short timeframe and Clime will welcome several new strategic investors to the group as a result.

“We are pleased by the strong support shown by institutional investors for the placement.  Despite these uncertain times, we are continuing to invest in growth while also ensuring we retain a strong capital position to take advantage of opportunities as they arise.  The placement welcomes new institutional and high net worth shareholders to our register, adding further capability and strategic benefit to the group”, Bristow said.

MFG Advisors will benefit from the transaction by gaining access to clients from Clime’s existing 45,000 subscriber database; a greater pool of quality investment opportunities for clients; and premium equities research and capability.

As part of the acquisition, MFG CEO Annick Donat will join the Clime executive team and continue in her role leading the Madison business.  Speaking of the announcement, Annick said “We are very much looking forward to becoming a part of the Clime growth story.  This is fantastic step forward in supporting our Advisers and moving towards a stable future.  We are proud of our adviser community and with Clime’s support, I’m excited to be leading our team through the next stage of our business.”

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