Prime Financial Group (ASX: PFG) is set to broaden its Wealth business and distribution network through the acquisition of Lincoln Indicators, an Australian firm specializing in investment research, portfolio management, platform services, and funds management. This strategic move aims to capitalize on the expanding high-net-worth (HNW) investor segment in Australia, which has grown to approximately 690,000 individuals managing $3.4 trillion in investable assets.
The acquisition involves an initial consideration of up to $5 million, with potential additional payments based on Lincoln achieving specific cost-saving and EBITDA targets over the next three years. The deal structure includes a mix of cash and Prime ordinary shares. Prime anticipates that Lincoln Indicators, with its 3,300 HNW investors and $600 million in managed funds, will contribute approximately $11 million in annual recurring revenue and a positive EBITDA contribution beginning in FY25.
According to Prime chair Simon Madder, the acquisition will provide additional tools and services for the high-net-worth and wholesale investor market, complementing the existing Wealth business and creating significant distribution capabilities. Lincoln co-founder and managing director Tim Lincoln will join Prime’s Wealth leadership team after the deal’s completion. Prime intends to fund the cash components of the acquisition using operating cash flow, debt facilities, and cash reserves.
