As a significant shareholder of FDCTech, Inc., Wayne Blazejczyk must stay aware of the business dealings of FDC’s subsidiary companies as their decisions may impact the fortune of the company and, therefore, the value of his stocks.
Australia-based FDC subsidiary Genesis Financial Inc. recently sold its mortgage brokering business, Interactive Mortgage and Finance Pty Ltd, to Haisto Consulting Pty Ltd. for $1.75 million, or AUD 2.3 million.
In a recent press release, FDC described the reasoning behind the divestment as such:
“Genesis has reached an agreement to divest its mortgage brokering business … to provide surplus capital to acquire complementary companies in wealth management, digital assets, and financial brokerage.”
FDC went on to explain the highlights of the deal in more detail through the following list:
Enables Genesis to concentrate on its core activities in the financial planning and advisory sectors in Australia.
Retains the ability of our 114 in-house financial advisors with over $540 million under advice and dealing group to cross-sell mortgage broking services through the Buyer.
Proceeds from the sale of IMF will enable FDCTech to acquire other profitable dealer groups in Australia, resulting in a positive step-change in revenue, assets under advice, and assets under management.
An ongoing relationship with the buyer, with a vast and robust distribution network, provides further organic growth opportunities and synergies.
Blazejczyk is confident about the new financial opportunities brought forth by the Genesis deal in light of this information. Not only will this deal bring forth potential growth for Genesis, but also in turn for FDC, as well; thus, benefiting all shareholders involved.
Additionally, the Executive Director of Australian operations at Genesis, Nick Brookes, provided the following statement regarding his perception of the agreement: “This transaction will realize a significant cash injection to the Australian subsidiary and enable us to focus on the core activities in line with FDCTech’s overall corporate acquisition strategy.”
Brookes continued with an uplifting message, “Our colleagues at Genesis should be commended for their efforts, along with those of our team, to achieve this turning point for the Australian operations.”
Thanks to this reassurance from Brookes and the important information provided by FDC, Wayne Blazejczyk is pleased with the announcement of the sale of IMF by Genesis. He looks forward to the future progress of FDCTech, Inc. and its subsidiaries.
For more information about Genesis and the future of FDCTech, you can read the full press release here.