Financial services group ClearView has launched a friendly takeover of Matrix Holdings, valuing the dealer group at $20.25 million.

It has offered Matrix shareholders $4.407 in cash and 8.776 ClearView shares for each share they own.

The Matrix board has recommended its shareholders accept the offer.

Matrix has 43 practices with 85 advisers, mostly in NSW with others in Queensland, SA and WA.

It generates $148 million of life insurance premiums a year.

The group was formed in 1999 with a core of former Prudential advisers after the insurer was taken over by Colonial.

Matrix was offered for sale in 2012, but was withdrawn last year after rejecting a number of offers.

ClearView MD Simon Swanson says the move is consistent with his company’s aim of building its financial advice business.

“The addition of the high-quality Matrix business propels the combined entity to be a significant player in the financial services industry and the only integrated life insurer and wealth manager that is not aligned to a major institution,” he said.

“It is ClearView’s intention to maintain the Matrix brand and key people, so as to continue to grow the combined business.”

Matrix Chairman Pieter Franzen says ClearView’s goal of establishing a high-quality financial advice business matches the dealer group’s ambition.

“The quality of ClearView’s business is self-evident from its recent results,” he said.

A bidder’s statement is expected to be lodged with the Australian Securities Exchange this week, with the offer’s closing date set for October 4.