[SINGAPORE] Digital wealth management platform iFast said it has conditionally agreed to acquire a 30 per cent stake in financial advisory firm Financial Alliance Corporation.
The group said in a bourse filing on Monday (Jan 5) that the proposed acquisition, worth S$19.6 million, will be funded with a mix of internal resources and external borrowings.
“The group believes the financial advisory industry in Singapore has substantial growth potential,” said iFast, adding that players with “scale, operational efficiency and access to products and modern technology will achieve dominance”.
Financial Alliance is a financial advisory firm with over 450 financial advisory representatives, offering clients financial advice in areas such as insurance, investment and estate planning.
iFast said it “sees Financial Alliance emerging as one of the long-term winners of industry consolidation, with the potential to list in the next two to three years”.
The group added that the acquisition would provide a “strategic bridge” between its wealth management platform and the business-to-business financial advisory service provided by Financial Alliance.
This would enable greater collaboration, adviser support and provide a “scalable foundation for future expansion”, it noted.
The transaction is not expected to result in any material change to the group’s earnings per share or net assets per share for the financial year ending Dec 31, 2026.
However, based on the normal operational performance of the business, the transaction is expected to be accretive to earnings and earnings per share, iFast said.
The group added that the proposed acquisition remains subject to relevant conditions being fulfilled, including the consent or approval of regulators.
Shares of iFast rose 0.5 per cent or S$0.05 to close at S$9.57 on Monday, before the announcement.
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