DURBAN - Sasfin Holdings has entered into an agreement to acquire SIPP Investments for an undisclosed amount.
Sasfin said the purchase would be integrated into the Sasfin Wealth suite of products and solutions over the coming months.
Sasfin Holdings executive director Michael Sassoon said the acquisition, still subject to regulatory approval by the SA Reserve Bank, would provide Sasfin Wealth with an additional suite of financial solutions, including an additional range of managed personal portfolios as well as in-house tax efficient wrappers, such as retirement annuities, preservation funds.
“It further provides Sasfin Wealth with a host of digital tools as well as independent financial advisers to service their clients more effectively and efficiently,” Sassoon said. SIPP primarily markets its solutions and tools to independent financial advisers.
Sassoon said Sasfin Wealth would continue to look at exploratory opportunities for bolt-on acquisitions. SIPP’s offering includes retirement annuities, preservation funds, tax-free savings account, direct exchange-traded fund portfolio and group retirement annuities.
Last month, Sasfin Wealth delivered a disappointing set of numbers for the year-end to June reporting headline earnings had decreased 51.91percent to R36.75million as a result of the mark-to-market loss on its investment in Efficient. The company said assets under management decreased from R40.11bn to R38.30bn.
The group also announced it was finalising a proposed restructure to adopt a more focused approach to its target markets along its core pillars of banking, wealth and capital. The companies have paved a way for the acquisition by appointing SIPP founder Erol Zeki as new Sasfin Wealth chief executive.
Zeki, who founded SIPP in 2014, would replace Sassoon, who would continue as an executive director of Sasfin Holdings. Zeki would be joining the Sasfin Wealth team with a proven pedigree, having spent at least 17 years in financial services.
Versatile
Zeki was also a chief executive of FNB Securities, previously BJM Private Client Services, before he founded SIPP. Sassoon said Zeki’s versatile experience and background in private client wealth management made him the ideal candidate to take the business forward.
“Since Erol has direct portfolio management experience, has run a large private client business in FNB Securities and has established a successful technology-based financial services business, we are confident that this combination of experience is unusual in the market and places him in a strong position to lead our business in its next stage of growth,” Sassoon said.
Zeki said he was excited to leverage off the experience and insights of senior executives in the business and, in conjunction with them, drive and grow the business’s strategic offering and scale in a highly competitive sector.
Sasfin shares closed 0.02percent lower on the JSE yesterday at R48.76.