Agreement to sell InvestSMART Business

 

SYDNEY, 13 August 2013: Fairfax Media Limited [ASX:FXJ] has entered into an agreement to sell InvestSMART to Australasian Wealth Investments Limited [ASX: AWK] for cash consideration of $7 million. 

Completion of the transaction is dependent on a capital raising process by AWI. In the event the transaction does not complete, AWI has agreed to pay Fairfax a break fee of $150,000. 

InvestSMART, established in 1999 and acquired by Fairfax in 2007, is an online financial services portal in Australia that provides self-directed investors with low cost access to financial information and products. 

Following the Future of Financial Advice (FOFA) legislative reforms, Fairfax believes the sale of InvestSMART to a financial services provider makes sense so the business can continue to be developed for the benefit of its clients. 

The sale agreement provides for plans to maintain a commercial relationship between Fairfax and InvestSMART, including the sale of display advertising on investmart.com.au and the promotion of Fairfax products and services to the InvestSMART client base. 

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Contact:
Brad Hatch
Manager of Communications
+61 2 9282 2168

 

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