It's a divestment strategy with nuances
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Genesis Financial Inc, FDCTech’s Australian subsidiary, has just agreed to sell its mortgage broking business to Haisto Consulting.
The sale of its Interactive Mortgage and Finance Pty Ltd (IMF) business is intended to give Genesis a cash injection and allow it to focus on the financial planning sector instead.
Genesis intends to continue cross-selling mortgage services via Haisto through its 114 in-house financial advisors.
"I believe that the acquisition of IMF presents an ideal opportunity to drive substantial growth in the mortgage broking sector; and to work with the prior management and sales team to ensure that the cross-promotion and access arrangements can remain and grow for the benefit of both groups over time,” said Jake Williams, CEO of Haisto Consulting Pty Ltd.
“The mortgage broking sector is a service-driven business, and we have the capabilities and experience necessary to deliver a strong suite of products at a competitive price.”
Nick Brookes, executive director of Australian operations at Genesis Financial, added: "We are pleased to reach terms with Mr. Williams and his team, who have a very successful background in the distribution of financial and educational products in Australia.
“This transaction will realise a significant cash injection to the Australian subsidiary and enable us to focus on the core activities in line with FDCTech's overall corporate acquisition strategy.”
The deal will see Haisto acquire 100% of the business for AUD$2.3 million. Genesis parent company, FDTech was formerly known as Forex Development Corporation and is a US-based tech business.
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