Count Limited has announced a strategic acquisition of Oracle Group, significantly expanding its financial advice and wealth management footprint across Australia. The deal is backed by a $40.9 million equity raising to support growth ambitions.
- Acquisition of Oracle Group valued at $72.2 million enterprise value
- Oracle Group adds 14 offices and 22 financial advisers across NSW, VIC, and QLD
- Wealth segment EBITA contribution rises to approximately 59% on a pro forma basis
- Equity raising includes a $35.9 million fully underwritten placement and $5 million share purchase plan
- Acquisition expected to be low double-digit EPS accretive in FY26 pre-synergies
Strategic Expansion in Wealth Management
Count Limited (ASX:CUP) has taken a decisive step to bolster its position in the Australian financial advice and wealth management sector by entering into a binding agreement to acquire Oracle Group. This acquisition aligns closely with Count’s strategy to build a leading integrated wealth and accounting platform, accelerating its growth in the employed financial adviser network and expanding its market participation.
Oracle Group, established in 1986 and headquartered in Newcastle, operates through 14 offices across New South Wales, Victoria, and Queensland. It offers a comprehensive suite of services including financial advice, accounting, and investment management. In FY25, Oracle generated $26.4 million in revenue and $8.6 million in EBITA, with forecasts indicating an EBITA of approximately $10 million for FY26.
Financial Impact and Synergies
The acquisition will increase Count’s Wealth segment contribution to about 59% of pro forma EBITA for the first half of FY26, up from around 46%, thereby surpassing Count’s target of financial planning revenues representing 50% of Equity Partnership revenues. The deal is expected to be low double-digit EPS accretive on a FY26 pro forma basis before synergies.
Count anticipates run-rate pre-tax cost synergies of approximately $1 million within 24 months post-completion, excluding one-off transaction and integration costs. These synergies are expected to arise from integrating Count’s investment solutions, including its CARE investment philosophy, across Oracle’s adviser network, as well as leveraging Count’s outsourcing and IT managed services.
Funding the Acquisition
To finance the acquisition and related expenses, Count is undertaking a fully underwritten institutional placement to raise approximately $35.9 million, alongside a non-underwritten share purchase plan (SPP) targeting up to $5 million from eligible shareholders. Additionally, $4.1 million in scrip consideration will be issued to certain Oracle Group shareholders, and a new debt facility is proposed to support the transaction.
Following completion, Count’s pro forma net debt to EBITA ratio is expected to remain healthy at around 1.0x, reflecting a balanced approach to growth and financial prudence.
Strategic Rationale and Market Positioning
Count’s CEO Hugh Humphrey emphasised the acquisition’s alignment with the company’s long-term strategy to expand its advice value chain and grow financial planning revenues. The deal not only enhances Count’s east coast presence but also significantly increases its exposure to the attractive Wealth segment revenues.
With Oracle’s approximately $0.8 billion in funds under management and $1.8 billion in funds under advice, Count’s network will grow to roughly $6.2 billion in funds under management and $42 billion in funds under advice. This scale is expected to strengthen Count’s platform for future acquisitions and broaden client access to Count’s CARE investment philosophy and other solutions.
Next Steps and Market Watch
The acquisition remains subject to customary conditions including approval from the Australian Competition and Consumer Commission (ACCC). Count will hold an investor and analyst briefing to discuss the transaction details and outlook. Market participants will be watching closely for the integration progress and the realisation of anticipated synergies in the months ahead.
Bottom Line?
Count’s acquisition of Oracle Group marks a pivotal move to reshape its wealth management footprint, setting the stage for accelerated growth and integration challenges ahead.
Questions in the middle?
- How quickly will Count realise the targeted $1 million in cost synergies post-acquisition?
- What impact will the equity raising and potential dilution have on Count’s share price and investor sentiment?
- How will regulatory approval processes, particularly ACCC clearance, influence the timing and certainty of completion?