NobleOak makes bold move: Acquires RevTech Trailing Commissions and FiftyUp Club business

NobleOak Life Limited, the Australian life insurance company with a remarkable 147-year history, has made a significant move by acquiring RevTech Media’s trailing commissions and the FiftyUp Club business in a strategic AUD 11 million deal. This acquisition marks a critical step in NobleOak’s pursuit of growth and profitability as it expands its access to the over 50 market, securing the loyalty of 480,000 members from RevTech’s established FiftyUp Club.

NobleOak’s decision to acquire these assets from RevTech Media Pty Ltd will provide immediate value, bringing accretive growth to the company’s balance sheet, particularly through the access to trailing commissions and the substantial FiftyUp Club membership base. The financial composition of the acquisition includes AUD 3 million in cash and AUD 8 million worth of NobleOak shares. These shares will be priced based on the volume-weighted average price (VWAP) calculated over the 25 days prior to the agreement, which works out to a share price of AUD 1.556.

Completion of the acquisition remains subject to several conditions, such as restructuring RevTech to facilitate the transfer of the FiftyUp Club and its associated assets to NobleOak. NobleOak will be taking ownership of RevTech Media, although it retains an option to return this media branch back to RevTech once the extraction of the relevant assets is complete.

This acquisition aligns with NobleOak’s long-term strategic goals, offering the company a means to continue its strong performance while reducing exposure to risks and uncertainties in the insurance market. According to Anthony Brown, NobleOak’s CEO, this move not only ensures continued access to the valuable customer base but also guarantees no ongoing commissions, thereby enhancing profitability.

“This acquisition is perfectly in line with our risk appetite and diversified growth strategy,” Brown said. The FiftyUp Club’s target demographic of customers over 50 represents a key market segment for NobleOak, whose direct-to-consumer life insurance products have found success in Australia.

Acquisition signals broader industry trend towards customer-centric models

The acquisition also reflects broader trends in the financial services industry, where companies are increasingly turning towards customer-centric models that leverage the power of digital platforms and established customer bases. The FiftyUp Club provides NobleOak with an already engaged audience, which will not only enhance the company’s direct-to-consumer offerings but also allow for streamlined marketing of new and existing life insurance products.

Industry experts have welcomed NobleOak’s move, with financial analysts commenting that this acquisition will significantly boost NobleOak’s market share, especially in the over 50 age group, where the demand for tailored life insurance products is growing. This acquisition is a clear example of NobleOak seizing an opportunity to reinforce its brand in a competitive market while strategically positioning itself for sustainable growth.

NobleOak continues to redefine the Australian life insurance landscape

Founded in 1877, NobleOak has undergone significant transformation in the past decade. From its origins in the United Ancient Order of Druids Friendly Society, it has evolved into a modern and customer-focused insurer. With the addition of the FiftyUp Club and RevTech’s trailing commissions, NobleOak is poised to continue disrupting the Australian life insurance landscape.

The FiftyUp Club has long been known for providing targeted financial services, utilities, and insurance products to Australians over 50. Established in 2011, RevTech built the FiftyUp brand into one of Australia’s most successful consumer platforms. The acquisition solidifies NobleOak’s reputation for innovation in a market that traditionally moves cautiously.

As the acquisition process moves forward, both NobleOak and RevTech Media expect the deal to generate substantial returns for shareholders, with immediate cash flow enhancements and potential for further growth as the FiftyUp Club membership remains an active and viable customer base for future NobleOak products.

This acquisition further strengthens NobleOak’s commitment to delivering simple, easy-to-understand, and competitive life insurance products across Australia. The company’s ability to adapt to market trends, coupled with its adherence to core values like transparency and value creation, makes it a formidable player in the financial services space.