Alpha FMC acquires Sydney-based Shoreline for initial £4.2m

2nd May 2023 12:02

(Sharecast News) - Alpha FMC announced the acquisition of Shoreline Consulting and Shoreline Consolidated on Tuesday, collectively known as 'Shoreline', for AUD 8m (£4.2m) in cash.

The AIM-traded firm said the acquisition also included a performance-driven earn-out of up to AUD 5m, also payable in cash.

It described Shoreline as a boutique consultancy based in Sydney, offering specialised services to the asset and wealth management industry in the Asia-Pacific region.

The acquisition was expected to be earnings enhancing in the year ending 31 March 2024.

Founded in 2009, Shoreline offers consulting expertise in product and distribution, operations and outsourcing, data and analytics, and digital and technology consulting.

With a team of 19 professionals, Alpha said Shoreline's client network spanned the region.

The acquisition was expected to strengthen Alpha's existing asset and wealth management expertise in the Asia-Pacific geography, and create a "leading specialist" consulting firm.

It said the acquisition would also enable Alpha to build on a robust platform, and take advantage of opportunities in one of the fastest-growing regions in the sector.

The maximum potential cash consideration payable by Alpha under the acquisition agreement, assuming full payment of the earnout, would be AUD 13m, funded from its existing cash resources.

Shoreline's longstanding management team would remain with the business post-acquisition.

In the 12 months ended 31 December, Shoreline generated unaudited consolidated revenue of AUD 7.5m and adjusted EBITDA of AUD 1m.

As at the end of 2022, Shoreline had AUD 1.4m of adjusted net assets.

"We are delighted to announce the acquisition of Shoreline and the expansion of the Alpha business in Asia-Pacific," said chief executive officer Luc Baqué.

"The combination of our two businesses makes us an excellent partner for clients in the region and provides the perfect platform for further growth in this exciting market.

"Acquisitions of this nature, along with organic growth, are very much part of Alpha's growth strategy."

At 1140 BST, shares in Alpha Financial Markets Consulting were up 0.86% at 469p.

Reporting by Josh White for Sharecast.com.