WT Financial to Buy 70% of Paraplanning Firm TNT for $2.43m

WT Financial (ASX:WTL) Group said it has executed a binding agreement to acquire a 70 per cent interest in TNT Advisor Solutions, which it described as an established Australian provider of premium, onshore paraplanning services. The consideration for the 70 per cent interest is $2.43 million and values TNT at $3.48 million, based on 4.5 times normalised EBITDA, and the acquisition will be funded from WTL's existing cash holdings. TNT's founders, Tamara Morey and Tanya Higgins, together with Chief Executive Officer Dela Dzadey, will collectively retain 30 per cent and remain actively involved in the business, with Ms Dzadey to continue leading TNT on return from maternity leave. Completion is expected shortly, subject to satisfaction of the remaining completion requirements.

WTL said it has agreed to acquire its interest directly or through a nominated related entity and is continuing to consider the optimal long-term holding structure, including potential participation by WTL & MWP Investco Pty Ltd, its joint venture with Merchant Wealth Partners, and that this does not affect its commitment to or funding of the transaction. Managing Director Keith Cullen said advice practices increasingly need access to scalable specialist capabilities, including high-quality outsourced services as an alternative to adding fixed internal resources, and that WTL expects demand for flexible outsourced paraplanning capacity to increase as practices seek to grow and scale. Ms Morey said the partnership would allow TNT to pursue its growth ambitions while preserving the qualities that had underpinned its success. The company said TNT will retain its identity, management team and client relationships, and will continue to serve practices across all licensee groups and the self-licensed market.