WT Financial Group is acquiring Millennium3 Financial Services, a financial advice network with more than 140 wealth and personal risk insurance advisers operating in more than 75 privately-owned practices across the country. 

The ASX-listed business will pay $2.01 million to buy the advice network on a debt free, cash free basis, with the final price adjusted at completion to reflect any retained working capital.  

WT expects to complete the deal with Millennium3 parent company, Insignia Financial, in the middle of next month. 

“The acquisition represents a significant opportunity to continue to leverage our robust and scalable infrastructure for the benefit of the advice practices we support,” WT CEO Keith Cullen said. 

WT says on completion of the deal, the Millennium3 network will lift its funds under administration by $5 billion to $23 billion and in-force premium by more than $150 million to $470 million. 

Millennium3 is expected to contribute more than $50 million in revenue, about $4.5 million in gross profit and more than $500,000 in pre-tax net profit to WT on an annualised basis. 

Insignia says the sale of Millennium3 is part of its strategy to reset its financial advice operating model through the creation of a new Advice Services partnership model. 

“The sale marks another important milestone as we execute our strategy, creating a simpler, more sustainable advice offering, enabling greater growth focus for the future,” CEO Renato Mota said. 

“Our advice strategy will enable us to focus on the growth of our Professional Services Advice Businesses… expanding the scope of advice through superannuation, and to leverage future opportunities presented by the Government’s response to the Quality of Advice Review.”