MDS Financial Group Acquires Assets of MINC Financial Services

20-Apr-2011 Assets of collapsed MINC Financial Services were acquired yesterday by MDS Financial Group, in a move which places MDS Financial in a strategically strong position and provides continuity of service for MINC clients affected by the company’s recent move to voluntary administration.

Under the terms of the agreement reached with MINC Financial’s appointed administrator, MDS Financial Group (ASX: MWS) will acquire the online trading business of MINC, its national client lists, the private client business, and advisors in Townsville, Bunbury, Gold Coast and Melbourne.

The acquisition marks another major advancement for MDS Financial, which recently purchased stockbroker D2MX, cementing its role as a genuine competitor in both the wholesale stock broking and online trading spaces.

“This acquisition continues MDS Financial’s push into the share broking industry and brings some very capable people into the business,” said Damian Isbister, CEO Corporate and Trading.

“The MINC online trading and advisory business units are a natural fi t with our existing subsidiaries Trader Dealer Online and D2MX stockbroking.”

With this transaction MDS Financial also achieves another strategic target of client acquisition and revenue generation through low-risk inorganic growth. “The acquisition does not include MINC’s debts, liabilities and infrastructure,” said Mr Isbister.

“We believe the assets we are taking on will quickly yield revenue exceeding the costs of the acquisition.” MDS Financial is working closely with Penson Financial Services Australia to ensure minimal disruption to clients during the transition period. Clients’ securities holdings and cash accounts remain unaffected, as they are maintained by the relevant CHESS sponsor, Penson Financial Services Australia Pty Ltd, and bank cash management accounts.

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