Prestige Wealth Inc. Announces Acquisition of Tokyo Bay Management Inc.
Introduction
HONG KONG, Nov. 12, 2024 (GLOBE NEWSWIRE) — Prestige Wealth Inc. (NASDAQ: PWM) (“PWM”, or the “Company”), a wealth management and asset management services provider based in Hong Kong, today announced that, on November 12, 2024, it entered into a definitive acquisition agreement pursuant to which PWM will purchase all shares of Tokyo Bay Management Inc. (“Tokyo Bay”), a company incorporated under the laws of the British Virgin Islands.
Acquisition Details
The total purchase price is US$1,500,000, subject to customary closing purchase price adjustments, in the form of 2,500,000 newly issued Class B ordinary shares of the Company at a price per Class B ordinary share of US$0.60 to the seller and key employees of Tokyo Bay. The Company will also grant warrants to purchase 1,875,000 Class A ordinary shares of the Company at an exercise price per share equal to US$0.72 to the seller parties. The warrants will become exercisable on the six-month anniversary of the issuance date and will expire on the fifth anniversary from the date on which they become exercisable. In addition, key employees will be retained and continue to be employed by Tokyo Bay after closing of the transaction. The acquisition agreement also includes a third-year period non-competition and non-solicitation covenants from the seller parties. Upon consummation of the acquisition of Tokyo Bay, that certain business development & marketing agreement by and between PWM and Tokyo Bay dated as of June 24, 2024 will be terminated.
Expected Impact
The acquisition of Tokyo Bay is expected to close in the fourth quarter of 2024 and will enhance PWM’s strategy and development in the Asia wealth management industry. This strategic move will allow PWM to expand its footprint in the region and strengthen its position as a leading wealth and asset management services provider.
How It Will Affect Me
As a client or potential client of PWM, this acquisition could result in an expanded range of services and offerings available to you. It may also lead to improvements in customer service and overall client experience as PWM integrates Tokyo Bay’s resources and expertise into its operations.
Global Impact
The acquisition of Tokyo Bay by Prestige Wealth Inc. could have broader implications for the global wealth management industry. It demonstrates a trend towards consolidation and strategic partnerships among financial services firms, which could influence market dynamics and competition on a larger scale.
Conclusion
In conclusion, the acquisition of Tokyo Bay Management Inc. by Prestige Wealth Inc. marks a significant milestone for both companies and has the potential to drive growth and innovation in the wealth management sector. By combining their strengths and resources, PWM and Tokyo Bay are well-positioned to cater to the evolving needs of clients and navigate the competitive landscape of the industry.
