Sequoia Financial Group Limited entered into heads of agreement to acquire Castle Corporate Pty Ltd and Castle Legal Pty Ltd for approximately AUD 3.2 million.

Sequoia Financial Group Limited (ASX:SEQ) entered into heads of agreement to acquire Castle Corporate Pty Ltd and Castle Legal Pty Ltd for approximately AUD 3.2 million on July 11, 2023. The consideration is payable in cash and shares over a period of two years post completion. The final tranche is subject to a performance hurdle payable in July 2025.

The acquisition will be funded from Sequoia?s strong cash reserves and be immediately earnings accretive. Founder of Castle, Jenny Hamley and her team will join Sequoia in the Professional Services Division. All of Castle's employees will join Sequoia Financial Group Limited as part of the acquisition, ensuring a smooth transition for Castle's clients and preserving the valuable knowledge and expertise within the organization.

The target completion date of this transaction is July 31, 2023. The acquisition of the Castle businesses has been procured on an attractive PE multiple and is expected to boost the EBITDA of the Professional Services division by AUD 0.8 million per annum.