John Shuttleworth

Listed licensing group Centrepoint Alliance has announced the acquisition of advice business Clearview Wealth in a $15.2 million share and cash hybrid deal that will give the group “immediate scale” according to new CEO John Shuttleworth.

The deal includes the acquisition of both Clearview’s advice groups Matrix Planning Solutions and Clearview Financial Advice.

Both groups have had a mixed bag in terms of adviser numbers over the last year and a half.

Matrix reported 114 advisers under its umbrella in June this year according to the Professional Planner Licensee Owners List, after recording 118 in 2020. Clearview Financial Advice had 73 advisers in June compared to 113 the year before.

Centrepoint’s licensed dealer groups include Alliance Wealth (195 advisers in 2021, up from 185 in 2020) and Professional Investment Services with 122 advisers in 2021, down from 157 in 2020.

The combined entity should have roughly 500 advisers on deck, which would make Centrepoint the sixth largest advice group in the country.

The announcement came as Centrepoint reported a net profit line of $1.8 million (after tax) and an increase of 6 per cent in gross revenue for the year, along with a decrease in expenses of 15.7 per cent YOY.

The purchase will be funded by $12M in escrowed Centrepoint shares and $3.2M in cash. Clearview will effectively become a 25 per cent shareholder in Centrepoint.

“This transaction represents the next phase of Centrepoint Alliance’s growth by providing immediate scale and will increase the business’s long-term value and profitability,’ said Shuttleworth, who took over as CEO this month after the recent departure of Angus Benbow.

Shuttleworth is a former general manager of platforms and investments at Westpac’s BT.

Join the discussion