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COG Financial Services has grabbed larger stakes in Westlawn and Platform Finance, with plans to take full ownership across both companies.
Last week, equipment finance broking group COG declared that it was set to acquire additional interests of two businesses it already held stakes in: broking, financial advice and accounting firm Westlawn Finance and aggregator Platform Finance, formerly known as PCG (Platform Consolidated Group).
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COG will take an additional 24 per cent interest, taking its ownership from 51 per cent to 75 per cent, with plans to acquire the remaining 25 per cent stake over the next three to five years.
It has also taken an additional 30 per cent interest in Platform Finance, taking it to full ownership.
“Both businesses have been performing strongly and further enhance COG’s business model through increased ownership,” COG stated.
The increased stakes will cost it around $24.3 million, which will be partly funded through a $20 million capital raise that was completed on Friday (15 October).
Westlawn’s 24 per cent stake will cost around $8.3 million, while the Platform Finance transaction is expected to cost around $15 million, to be split 50:50 between cash and COG shares.
COG reported a strong start to its 2022 financial year, with its unaudited first-quarter results recording a net profit after tax and amortisation (NPATA) of around $4.7 million, up by 147 per cent on the prior corresponding period.
Finance broking and aggregation contributed $3.1 million in NPATA, up by 40 per cent, while lending at $1.9 million more than tripled from $500,000 the year before.
The group has an estimated 18 per cent market share of broker originated asset finance, according to an investor presentation on Thursday (14 October).
The new acquisitions are expected to wrap up by the end of November.
[Related: MoneyQuest’s $1bn broker sells franchise]
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