SHARE has bought Darren Gannon's controlling stake in the insurance and mortgage advice group, TMM Online can exclusively reveal.
The acquisition, which could be announced this week, comes after Newpark sought new financing amid a lack of certainty over its life insurance revenue.
SHARE has pounced on Newpark in a bid to boost its home loan adviser numbers. Since inception, Newpark Home Loans has grown to over 200 advisers.
The combined group is likely to have over 500 advisers across investment, insurance, and mortgage advice.
A new company, Newpark 2020, was listed on the companies register, on November 12, with SHARE NZ listed as its 100% shareholder.
The Newpark brand will remain, sources said. Advisers will have the option of keeping their planned regulatory setup, or taking one of the options available to current SHARE members.
SHARE runs a corporatised offering, in which advisers own a share in the business and pool clients. It also runs a non-branded side, with advisers working under its FAP.
Sources said that despite the change in ownership, it would be "business as usual" for advisers at Newpark, and advisers would be able to keep their current regulatory and ownership structure, and keep their own FAPs.
Industry sources said the deal would suit Newpark advisers given SHARE's strong back-office and governance systems.
The takeover will see Darren and Adele Gannon, and Murray Weatherston step down from their board roles at Newpark, as SHARE NZ directors assume the board seats.
SHARE's Tony Dench will be the chief executive of the combined group, while Richard Thomas will become chairman, sources said.
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Congrats to Darren and Adele on making the decision that's right for them and where I expect the challenges for similar businesses will go.
I'm sad to see this on some levels as Newpark has provided excellent support to advisers and their growth. Even when those advisers have forgotten where they have come from.
The support I have personally received has helped me grow in many ways. And I am thankful for that.
Newpark’s history and disruption in our market has helped move us along to where we are today, good and bad. Challenges, drama and success.
To the future I look forward to what Share is able to provide and support in the adviser space. They have been one of the consistent providers in the market that have strived for high standards.
I guess congrats to all concerned and good luck for the future.