Premium funding specialist Centrepoint Alliance has announced a merger with Professional Investment Holdings (PIH), an independently owned network of financial advisers and accountants.

Centrepoint says it has entered the deal to create a stronger and more diversified financial services group.

Under the terms of the merger, announced on Friday afternoon, PIH will become the wealth management arm of Centrepoint Alliance, alongside the existing commercial finance division.

PIH operates a national network of 1417 financial advisers and 1400 accountants. Its fund administration and loans portfolio includes $170 million in inforce insurance premium.

Centrepoint Alliance Chairman Rick Nelson said the current financial environment, together with the benefits of being part of a broader listed business, “provides a strong platform for growth in the changing wealth management industry”.

Centrepoint MD Tony Robinson will be MD of the merged group, with the merger expected to be completed in July.

As previously reported by insuranceNEWS.com.au, Centrepoint has been considering a range of financial services acquisitions in recent months.

The proposed merger remains subject to regulatory approval. It will be processed through a scheme of arrangement contingent on the support of both companies’ shareholders.

PIH shareholders will hold 80% of the post-merger entity on a fully diluted basis, following completion of the all scrip offer.

Should the merger proceed, the Centrepoint Alliance board will have an independent chairman and equal representation from both companies.