Yellow Brick Road buys mortgage manager
Yellow Brick Road is maintaining its growth push, announcing that it will acquire mortgage manager Loan Avenue. The South Australian company has a loan book worth about A$590 million and has a history of settling around $180 million of loans a year.The deal includes a cash payment of $2.6 million on completion, a deferred cash payment of $450,000, an issue of YBR shares worth $675,000 and additional payments of up to $300,000 of cash plus $75,000 of shares if earn-out conditions are met.YBR said in a statement that Loan Avenue's South Australian base would give it geographic diversification.It said Loan Avenue was an established and profitable business with 100 brokers.This is YBR's second acquisition this year. In March it bought brightday, a web-based retail investment business. YBR executive chairman Mark Bouris said the acquisition of a digital platform was part of the company's online strategy. The company will launch a "direct and online strategy" in the 2016/17 financial year.Bouris said the digital push was aimed at growing the wealth side of the business, which is currently much smaller than the mortgage broking division.