Accounting firm operator Kelly Partners Group Holdings (ASX: KPG) has announced they have entered into an agreement to acquire a Melbourne CBD accounting firm, anticipated to build the group’s client group base, recurring revenue, and EBITDA.
Acquisition of the 25-year-old Melbourne firm is anticipated to be completed in November and it is reported the deal will bring an additional 500 client groups to the K+P, increasing their existing client groups by over 7%, from 7000. Additionally, the move is estimated to bring in recurring revenue between $2-2.5m for K+P. The estimated $500k increase in EBITDA would increase the group’s EBITDA by approximately 3.69%, from roughly $13.5m as reported in FY2018, following transaction improvements.
K+P’s CEO, Brett Kelly stated that “It is a strong move forward in the Group’s mission to provide a growing network and service offering to clients as Kelly+Partners expands outside of Sydney to duplicate its success in Sydney in Melbourne.” With Kelly also commenting ‘’The acquisition confirms the attractiveness of the Kelly+Partners offer to owners of progressive accounting firms.
The group reports their latest Melbourne acquisition is a leading provider in the taxation and accounting services industry, with individual, community group, and SME clients. An agreement was also reached to refer wealth-management and accountancy business to the group, following the move.
Kelly+ Partners was established in 2006, offering chartered accountancy, legal taxation, private wealth, and estate services. From an initial two offices in Sydney, K+P have 12 locations, operating over twenty businesses across Australia, Auckland, and Hong Kong. The latest Melbourne acquisition marks six since their IPO in mid-2017.
This latest acquisition comes only one week after K+P acquired another firm as the company increases its national footprint via their unique Partner-Owner-Driver model.