Renowned financial advice business Eureka Whittaker Macnaught has been bought by AZ Next Generation Advisory (NGA), a subsidiary of Italian fund manager Azimut Group.

NGA will take 49% of Eureka shares through a share swap. NGA will buy these shares over the next 10 years. The remainder of the Eureka shares will be bought for cash in the next two years, with proceeds going to the founding partners.

The deal is valued at €3.9 million ($5.5 million).

Whittaker Macnaught was founded as an advice firm in 1983 by industry doyen Noel Whittaker, who is still writing books and articles on financial matters.

In 2007 it was sold to Bankwest, and subsequently moved to Commonwealth Bank following a takeover of the WA institution.

The company was shut down in 2013 and its advisers moved to Financial Wisdom.

Eureka Financial Group started in 1993 as an agent for Colonial Mutual, and subsequently became a licensee of Financial Wisdom.

In 2013 Eureka took over a third of Whittaker Macnaught’s Queensland clientele.

The dealer group now has more than 5000 clients and 29 staff in Brisbane and Sydney.

Eureka CEO Greg Cook and CFO Andrew Jones will remain with the business after the takeover.

“This transaction heralds a new era of growth for Eureka Whittaker Macnaught,” Mr Cook said. “Together with NGA we are going to grow our business for the benefit of our clients and the career path of our team members.”

Mr Cook will join the NGA board, while Mr Jones will become the first adviser representative on NGA’s research committee.

NGA CEO Paul Barrett says he looks forward to seeing the pair’s contribution.

“Mr Cook has been a big contributor to the financial advice industry through his involvement in a variety of industry bodies and board committees,” Mr Barrett said. “Mr Jones has a deep expertise in the planning process and portfolio construction, which we are looking to leverage.”

Mr Barrett says NGA has shortlisted a number of quality financial planning businesses and is performing final due diligence on its next partnership.