Wide Bay Australia Ltd (WBB) and Aviva Australia (a wholly owned subsidiary of UK listed Aviva Plc) are pleased to announce that following extensive due diligence, they have agreed to each acquire a 25% interest, giving a collective interest of 50.01% interest in Financial Technology Securities Pty Ltd (Financial Technology).
Financial Technology has operated since 1993 as financial planners using a plan that utilises investor equity for wealth creation, with Wide Bay Australia being one of their preferred lenders and Navigator their investment platform, during that period. The company is a very successful operation primarily based in South East Queensland and New South Wales, with a large clientele developed over the years.
The acquisition will strengthen Wide Bay's presence in the financial planning industry, extending our range of services that will be available to our customers and shareholders.
The founder and managing director of the company Geoff Putland will continue in the role of chief executive officer, until a successor is appointed and will remain on the board as chairman for at least five years, ensuring the company retains the extensive expertise and skills he has developed over the years.
Commenting on the acquisition, Ron Hancock, managing director of Wide Bay Australia, said Financial Technology provided an exciting opportunity for the group as it had a wide reach in its selected market and an excellent demographic amongst its client base.
"Both Aviva and Wide Bay Australia recognise the growth opportunities Financial Technology brings. It is a business that will grow with the additional support provided by its new equity investors.
"Together we will offer a wealth of financial skills to Financial Technology which we are widely recognised for. We think their customers will be even better served as a result of this restructure," said Mr Hancock.
Aviva Australia chief executive officer Allan Griffiths added he was very conscious of maintaining the unique character of Financial Technology that had helped it to become so successful.
"Aviva's model is to support the growth and development of successful financial planning groups. We expect both Wide Bay and ourselves will be able to lend our proven skills to the Financial Technology team.
"I'm very excited by the opportunity this investment provides. Our Navigator platform has been an integral part of Financial Technology’s business since it began, so the whole team knows each other well.
"Aviva has also admired the growth of Wide Bay, and its exciting business model. Together with the staff who continue to hold equity in Financial Technology, we expect this will be a very exciting partnership based around taking the business to the next level," said Mr Griffiths.
The 50.01% investment in Financial Technology is expected to be completed on Wednesday 3 August 2005.