Two investment management research houses are set to merge, with Zenith Investment Partners announcing that it has entered into an agreement to purchase Chant West’s superannuation research and consultancy business.
The deal, which is subject to Chant West shareholder approval, is worth $12 million and is expected to be competed by April.
Chant West Holdings will retain Enzumo, a financial planning technology business. The company says: “Enzumo conducts in-depth analysis of financial planning businesses and creates tailored technology solutions to help them operate more efficiently and compliantly.”
Zenith chief executive David Wright says the combined Zenith and Chant West businesses will have more than 70 staff, with offices in Sydney and Melbourne.
Wright says: “This is a logical fit for our growth plans to better serve an expanded client base with unbiased research, consultancy and online tools, especially at a time when the broader super, pension and advice markets are undergoing considerable change.”
The combined client base will include super funds, financial planning groups and fund managers.
According to Chant West Holdings’ 2018/19 financial report, the Enzumo business generated $1.9 million of revenue and made a pre-tax profit of $84,000.
The Chant West business had revenue of $6.5 million and made a pre-tax profit of $1.5 million. The bulk of Chant West’s revenue comes from subscriptions.