Kelly Partners Group acquires accounting firm in Melbourne
SYDNEY: Kelly+Partners Group Holdings Limited has entered into a binding agreement to acquire an accounting firm located in the Melbourne CBD.
The acquisition is expected to contribute $2.0m - $2.5m in annual recurring revenue to the consolidated Group and approximately 5500K of EBITDA to the parent entity post transaction improvement.
The acquired firm will relocate to the Group's existing Melbourne office, located at 333 Collins St, Melbourne. An exclusive agreement has also been signed to refer accounting and wealth management business to Kelly Partners post the acquisition. The acquisition is structured under the Group's Partner-Owner-Driver model.
Chief Executive Officer of Kelly+Partners, Brett Kelly said "The acquisition confirms the attractiveness of the Kelly+Partners offer to owners of progressive accounting firms.
"It is a strong move forward in the Group's mission to provide a growing network and service offering to clients as Kelly+Partners expands outside of Sydney to duplicate its success in Sydney in Melbourne.
"The Group's proprietary systems and processes are expected to deliver strong benefits to private businesses and their owners located in Victoria.
"The Melbourne office will also provide a further growth avenue for the Group's Complementary Services businesses including Taxation Consulting, Private Wealth, Finance, Corporate Advisory and the Investment Officer.
The targeted completion date is November 01, 2019, with completion subject to finance.
The acquired firm is more than 25 years old and holds a leading position in the Melbourne CBD for accounting and taxation services to SMEs, community groups and individuals. The acquisition will bring --500 new client groups to Kelly Partners, with the total client groups serviced by the Kelly Partners group increasing to -7,500 client groups.
This is the Group's sixth acquisition since IPO in June 2017. Acquisition discussions continue with other firms.