Yellow Brick Road (YBR) has successfully completed the acquisition of mortgage manager Loan Avenue as the diversified finance group continues to push for scale.
Mark Bouris, executive chairman of YBR, says the acquisition has enabled the group to solidify its position in Victoria and South Australia, and is another key milestone in its journey to becoming a leader in the non-bank sector.
“We welcome Loan Avenue management, employees and our distribution partners to the YBR group and look forward to leveraging our marketing platforms to significantly increase Loan Avenue’s lead flow as part of our combined group,” he said.
As part of the acquisition, YBR announced that it has issued more than 2.5 million new, fully paid ordinary shares to the vendor shareholders of Loan Avenue and their associates.
Loan Avenue’s founders and vendors, Paul and Michelle Collins, have agreed to stay on at the mortgage manager to assist in maintaining and driving existing aggregator and broker relationships, as well as supporting integration with YBR.
“We are delighted to join such a fast-growing and diversified group as YBR,” Mr Collins said last month when the acquisition agreement was announced.
“Our focus will be to enhance our broker relationships and drive further product initiatives with YBR, whilst maintaining the high service levels for which we are renowned.”
The deal cost up to $4.1 million in cash and shares, according to YBR.
[Related: YBR announces another acquisition]