TIDMAFM
RNS Number : 9804X
Alpha Fin Markets Consulting plc
02 May 2023
2 May 2023
Alpha Financial Markets Consulting plc
('Alpha', the 'Company' or the 'Group')
Acquisition of Shoreline
Alpha (AIM: AFM), a leading global provider of specialist
consultancy services to the asset management, wealth management and
insurance industries, is pleased to announce that it has completed
the acquisition of 100% of the issued share capital of Shoreline
Consulting Pty Ltd and Shoreline Consolidated Pty Ltd (together,
'Shoreline'), a boutique consultancy that provides services to the
asset and wealth management (AWM) industry in Asia Pacific
(APAC).
Acquisition highlights
-- Alpha acquires Shoreline, a specialist APAC AWM consultancy
headquartered in Sydney, Australia
-- Shoreline's client base, capabilities and company culture are highly complementary to Alpha
-- Strong strategic rationale for the acquisition, which
strengthens Alpha's existing AWM expertise in APAC and creates the
leading specialist AWM consulting firm in the region
-- AUD 8.0m (GBP4.2m) initial cash consideration payable in
three instalments on deal completion and the following two
completion anniversaries, plus a performance-driven earn-out
mechanism of up to AUD 5.0m (GBP2.6m) in cash designed to maximise
growth and fully align management incentivisation.
Background on Shoreline
Shoreline, which is headquartered in Sydney, Australia, was
founded in 2009 with the aim of guiding asset and wealth management
firms in APAC through their strategic transformation programmes.
Shoreline is a 19-person strong consultancy with a client network
that spans the region. The firm's core capabilities include:
product and distribution; operations and outsourcing; data and
analytics; and digital and technology consulting expertise. The
longstanding management team will remain with the business post
acquisition.
Acquisition rationale
Following the acquisition of Shoreline, Alpha is the leading
specialist AWM consultancy in APAC incorporating Shoreline's
complementary client base, employee skill sets and capabilities.
This acquisition enables Alpha to build upon a robust platform and
ensures that the firm can take advantage of opportunities in one of
the fastest growing regions in the AWM sector. The addition of
Shoreline is expected to be earnings enhancing in the year ending
31 March 2024.
Transaction terms
The Group has acquired Shoreline, on a cash and debt-free basis,
for AUD 8.0m (GBP4.2m) initial cash consideration plus a
performance-driven earn-out of up to AUD 5.0m (GBP2.6m) also
payable in cash. The initial cash consideration is payable in
instalments, with AUD 4.9m (GBP2.6m) paid on completion, and AUD
1.7m (GBP0.9m) and AUD 1.4m (GBP0.7m) payable on the first and
second anniversaries of completion, respectively. Any earn-out
tranches are payable by July 2025, 2026 and 2027 respectively. The
maximum potential cash consideration payable by the Group pursuant
to the acquisition, assuming full payment of the earnout, would be
AUD 13.0m (GBP6.8m). The consideration will be funded from the
Group's existing cash resources.
In the twelve months to 31 December 2022, Shoreline generated
unaudited consolidated revenue of AUD 7.5m and adjusted EBITDA of
AUD 1.0m. As at 31 December 2022, Shoreline had AUD 1.4m of
adjusted net assets.
Commenting on the acquisition, Luc Baqué, CEO at Alpha, said:
"We are delighted to announce the acquisition of Shoreline and the
expansion of the Alpha business in APAC. The combination of our two
businesses makes us an excellent partner for clients in the region
and provides the perfect platform for further growth in this
exciting market. Acquisitions of this nature, along with organic
growth, are very much part of Alpha's growth strategy."
Commenting on the acquisition, Paul Tan, Head of APAC - Asset
& Wealth Management Consulting at Alpha, said: "The pace and
need for change amongst asset and wealth managers in APAC continues
to grow strongly. Our acquisition of Shoreline expands Alpha's
specialist offering and presence in the region, particularly in
Australia, at the perfect time to navigate the opportunities in
this expanding market. Shoreline brings a highly complementary
client base, a similar culture and a strong management team. We are
excited to be bringing the Shoreline team into the Alpha fold."
Commenting on the acquisition, John DiBiase, managing partner of
Shoreline, said: "The Shoreline team is delighted to be joining
Alpha. This is great news for our people and our clients, as it
gives us all access to a broader range of services, access to
greater expertise and means we are now part of a truly global
network. We have very similar clients, there are strong parallels
with our services proposition and we are very well culturally
aligned. We look forward to becoming part of the wider Alpha
Group."
Enquiries
Alpha Financial Markets Consulting plc +44 (0)20 7796 9300
Luc Baqué (Chief Executive Officer)
John Paton (Chief Financial Officer)
Investec Bank plc - Nominated Adviser, Joint
Corporate Broker +44 (0)20 7597 4000
Patrick Robb
James Rudd
Harry Hargreaves
Berenberg - Joint Corporate Broker +44 (0)20 3207 7800
Toby Flaux
James Thompson
Alix Mecklenburg-Solodkoff
Camarco - Financial PR +44 (0)20 3757 4980
Edward Gascoigne-Pees
Phoebe Pugh
Prism Cosec - Company Secretary +44 (0) 7581 053148
Sally Chandler
About Alpha:
Headquartered in the UK and quoted on the Alternative Investment
Market (AIM) of the London Stock Exchange, Alpha is a leading
global provider of specialist consultancy services to the asset
management, wealth management and insurance industries.
Alpha has worked with all of the world's top 20 and 80% of the
world's top 50 asset managers by AUM, along with a wide range of
other buy-side firms. It has the largest dedicated team in the
industry, with over 900 consultants globally, operating from 16
client-facing offices spanning the UK, North America, Europe and
APAC.
- ENDS -
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