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One of Australia’s leading brokerages has become even bigger after making its sixth acquisition in six years.
KeyInvest acquired fellow Adelaide firm The Home Loan Centre on February 21, following nine months of negotiations. The terms were not disclosed.
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Chief executive Chris Burns told The Adviser that the acquisition had given KeyInvest an extra 2,500 active clients and the capacity to broaden its offering.
The Home Loan Centre, which will continue trading under its own name, specialises in government-backed HomeStart loans for customers who struggle to secure mainstream finance.
Mr Burns said KeyInvest had a loan book of almost $2.5 billion. “[The acquisition] will probably increase our loan volumes by 10 per cent, but our loan volumes in the past four months have increased by 20 per cent anyway,” he said.
KeyInvest now has 70 staff after adding six from The Home Loan Centre. All employees signed on with KeyInvest except for the outgoing owner, David Newstead, who opted for retirement, Mr Burns said.
The deal was set in motion by Mr Newstead, who was looking for an exit strategy, according to Mr Burns. “They approached me, but I’m always out in the marketplace and people know that I’m a buyer,” he said.
KeyInvest has made six acquisitions in six years, the last of which was First Rock in 2010.
“We’re ecstatic with this acquisition in terms of the quality of staff that are coming over. If there’s no cultural fit, I’ll walk away,” he said.
KeyInvest ranked 12th in The Adviser’s Top 25 Brokerages list of 2013.
