STOCKBROKER Wilson HTM has further replenished its adviser ranks and streamlined its operations through a deal with fellow listed broker Investorfirst,capping a year of consolidation as firms try to offset weak deal flow and market volumes.
Wilson said yesterday it would take control of Investorfirst's stockbroking and investment advisory businesses,adding three analysts and nine advisers,including Investorfirst's chief revenue writer and Melbourne broking identity Hugh Robertson.
No cash has been exchanged,with Wilson pledging to move$1.4 billion in funds under management to Investorfirst's HUB24 investment and superannuation platform,subject to successful development and final agreement.
The deal,labelled as"mutually beneficial"by Investorfirst,will allow each firm to focus on its core operations,enabling Wilson to outsource facilitation of the funds under management as it transforms into a more-focused broking and private wealth management group.
It comes after a year of turmoil at Investorfirst,culminating in Mr Robertson's successful push for boardroom change in October.
The broker posted a$30.5 million loss in 2011-12.
Wilson,which has rejected a scrip takeover offer from corporate raider Mariner Corp,hasn't escaped the horrid conditions facing all brokers,recording a$7.6m loss for the year.
But the Investorfirst team goes some way to replacing some of the revenue Wilson lost when Ord Minnett poached five of its star advisers this year in a raid that ended in the courts.
Mr Robertson is understood to have written about$2m of the firm's$4.5m in revenue last year.
"It's a team of people who are really experienced in emerging companies,which is the focus of our firm:private wealth management and emerging companies,"Wilson managing director Andrew Coppin said.
The deal will also increase Wilson's research coverage of mid-cap stocks by about 20 firms to 120.It follows the merging of BBY and Cameron Stockbrokers,and EL&C Baillieu with FW Holst.
For Investorfirst,the deal will boost funds under management on the platform from about$300m to$1.4bn,providing the scale to develop the HUB24--used by financial advisers,stockbrokers and institutions--to take on platform providers such as Macquarie,AMP and MLC.
Wilson will work with Investorfirst to help commercialise HUB24 into state-of-the-art wealth management,including for its high-net-worth clients.
Wilson shares rocketed 15.91 per cent to 25.5c.
