Listed mortgage and financial services group, Firstfolio Limited (FFF), today announced that it plans to acquire one of the company’s major wholesale mortgage distribution and financial services partners, Apple Group. The deal follows the success of a joint venture agreement signed between the two companies in March 2008, under which Apple was the exclusive distributor of Firstfolio’s mortgage products and services, including New Loan-branded mortgages. Under the terms of the proposed transaction, Firstfolio will pay $4.25m to acquire 100% of Apple Group’s assets, including its $600 million loan book.
Firstfolio CEO, Mark Forsyth, said: “Apple demonstrates all the hallmarks of a high performing, well managed and emerging business. Over the past 15 years, the owners have built a client portfolio of near to 6,000 small and medium sized businesses and high net worth individuals. “Since the Apple partnership was signed two years ago, they have grown from strength to strength, by successfully diversifying its earnings, expanding the loan portfolio and settling loans in excess of $200 million per annum. “Apple’s long-term growth strategy, which has gained significant momentum and is already bearing fruit, is what we are attracted to. Under our ownership and with secure access to a greater scale of wholesale funding, we will look to accelerate Apple’s expansion ambitions across Victoria, Queensland and New South Wales,” he said. Commenting on the proposed acquisition, Managing Director of Apple Group, Rob De Soza said: “Since partnering with Firstfolio and plugging into the eChoice network we have grown our geographic distribution footprint as well as our mortgage and finance offering. “Our industry will rapidly consolidate over the next 18 months. Economies of scale, funding and the ability to provide tailored financial solutions and seamless service are where the industry is headed. And this is why we chose to become a part of Firstfolio’s business.”
Firstfolio is a specialist mortgage and financial services distribution business, with a diversified distribution network through its aggregation business and Australia’s leading online mortgage platform, eChoice. Firstfolio is one of Australia’s top tier mortgage aggregator/referrer platforms, and has secure lines of funding through a range of wholesale providers including ING, Adelaide Bank and Origin. Firstfolio also specialises in offering property related and financial service solutions including: finance; bonds; fee funding; property investment, professional services and insurance. Apple Group is one of Tasmania’s largest mortgage brokers with offices in Hobart, Launceston, Devonport and Burnie. Apple Group is the result of a joint venture in 2004 between then two of Tasmania’s largest mortgage brokers, Mortgage Solutions Tasmania and The Home Loan Shop. Both mortgage brokers have been operating for over 15 years. Apple Loans offers residential and investment home loans, commercial lending, financial planning, plant and equipment loans, insurance, credit cards and personal loans.
www.firstfolio.com.au.
