)
Sydney-based stockbroking and financial advisory business Evans Dixon (ASX: ED1) will expand its operations following the acquisition of Fort Street Advisors.
The deal, worth 14.3 million shares in Evans Dixon and $23.4 million in cash, will form the basis of a new corporate & institutional division at the company.
The new division will complement Evans Dixon's existing businesses and will operate in the corporate advisory, markets and research sectors.
As part of the deal, Evans Dixon will also acquire a 25 per cent interest in joint venture companies Fort Street Real Estate Capital Pty Limited (FSREC) and Fort Street Real Estate Services Pty Limited.
FSREC manages 12 commercial properties across four closed ended real estate funds and its total assets under management comprises more than $730 million at 30 June 2018.
Evans Dixon says the transaction will open both businesses up to new opportunities in areas including the real estate, consumer, healthcare, technology and private equity sectors.
Fort Street began as a boutique corporate advisory firm in 2009. Its leadership team will continue to be involved at Evans Dixon in key roles at the new corporate & institutional division.
Evans Dixon executive chairman David Evans (pictured) says the transaction is ideal for both parties, considering the significant synergies between the two businesses.
"There is an undeniable opportunity to benefit from the expertise of Fort Street and Evans Dixon to create a leading Australian corporate advisory and capital markets platform." Says Evans.
"Evans Dixon and Fort Street Advisers are highly complementary businesses. Each was founded and built on a cultural, ethical, and professional platform of providing trusted advice in a highly client-centric service model."
"We see clear sectoral and service expansion opportunities providing exciting career pathways for our existing staff as well as new top-class talent."
Shares in Evans Dixon are down 1.41 per cent to $2.10 per share at 10.07am AEST.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
)
)
)
)
)
