Greek owned Fin Index in $130 million takeover

Wealth planner firm headed by Greek Australians finalising talks to buy rival company Centric Wealth

A $130 million takeover of a rival wealth planning and advising company will make Financial Index Wealth Accountants’ Greek Australian partners heads of one of Australia’s largest non-aligned financial advisory businesses.
CEO of Financial Index Wealth Accountants Ltd (FIWA), Spiro Paule, Chairman and brother Terry Paule, Chief Information Officer Nick Mylonas and Chief Operations Officer Tony Roussos have started plans to buy out Centric Wealth Ltd.
The companies are, as CEO Paule says, “carbon copies of each other” and will boost the company’s funds under advice up to $7.5 billion if the takeover is successful by its cut off date in March.
He says the two businesses would focus on providing high quality financial advice for clients.
“We are both focussed on providing the best possible advice and solutions to our clients. We will be able to share respective areas of expertise and offer clients and employees a greater level of sophistication and opportunity,” Paule said to the Financial Standard.
Keeping the company independent and non-aligned was still paramount to the business and was a good reason to buy Centric Wealth Mr Paule mused.
It comes after Centric Wealth’s owner Champ Private Equity put the business up for sale six months ago.
Centric Wealth is being backed by major private equity player from the UK, KKR Asset Management which will hold a 30 per stake.
Centric Wealth shareholders would be entitled to receive 8.9 cents cash per ordinary share, with the offer being endorsed as fair and reasonable by the Centric Wealth Board.
For FIWA, the company is still in the hands of its founding partners, brother Spiro and Terry Paule. The duo set up the firm in 1987 to become a financial advice business, effectively making a financial index for clients, hence the name.
In 2001, FIWA merged with three small businesses and it’s success started a common thread, where the Index would re-invest its profits in buying up other businesses to integrate into their model.
In the past 10 years FIWA has acquired 45 businesses, and with Centric Wealth’s acquisition, the company is expected to make that number grow exponentially over time.
CEO Paule says he isn’t looking to take over another business this year with the merger still new but hopes to entice more businesses in 2015.
Source: Data Room, Money Management, Financial Standard