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COG Aggregation has acquired NFC and United Financial Services, which represent 182 broker firms nationwide and write approximately $1 billion in volume per annum.
ASX-listed asset finance group COG has announced the acquisition of the NFC and United Financial Services (UFS) aggregation businesses from McMillan Shakespeare Limited.
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The aggregator said the acquisition would enable the group to “fast-track the expansion of its auto and lifestyle asset finance segment”, which it sees as a rapidly growing area.
The acquisition took full effect from 1 August, with the commercial elements to be disclosed in COG’s 2023 financial results reporting on 25 August.
Ryan Young, chief executive of COG Broking and Aggregation, said: “With the growing demand for car and lifestyle asset finance, the acquisition was a logical next step.
“It progresses COG Aggregation’s aim to build a complete offering for asset finance brokers and enables us to use our scale to reinvest the specialist tools and services that our brokers need.
“There has been very little competition between the businesses over the years, with each operating as an expert in its own segment.
“It’s business as usual for NFC and UFS brokers and we intend to move quickly to reinvest in the business, replace vacant roles, and to extend COG’s services into the network.
“Likewise, we intend to take the best features of NFC and make them available to our existing COG Aggregation network.”
To grow its auto and lifestyle asset finance category and meet increasing demand COG Aggregation created COG Retail, a specialist retail division.
The firm appointed NFC Aggregation’s former national sales manager Darren Hughes in June to head up the newly created division and utilise his more than 30 years of experience in the financial service and auto sector.
Mr Young said: “Darren’s vast experience in dealership finance, B2B and B2C sales means he is ideal to head up this division and is well placed to assist brokers [to] grow their business with the assistance of the COG support network.
“We’re thrilled to have him as part of our team.”
Mr Young said as part of the acquisition all NFC and UFS staff and systems were added to the group as it was designed to be a “seamless transition”.
He said he was “excited to add the staff who are widely regarded as experts in their field to our team”.
COG’s acquisition of NFC and UFS came after it acquired the salary packaging business Paywise for $30 million earlier in the year.
The acquisition activity occurred after COG Financial Services merged its two aggregation companies, Platform Finance and Consolidated Finance Group, to create COG Aggregation.
The merger took effect on 6 October 2022, with it expected to become the largest asset finance services broking business in the country – responsible for $6.7 billion in asset finance volume.
COG Aggregation has over 700 individual broker members across approximately 250 broking businesses and its 45-strong lender panel is believed to be one of Australia’s largest asset finance lending panels.
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