Yellow Brick Road has offered to acquire local mortgage aggregator Vow Financial.

Yellow Brick Road, the Australian wealth management firm, has announced plans to acquire a local mortgage aggregation company to expand its business. 

The acquisition of Vow Financial Holdings will effectively grow YBR's distribution channel with 700 new mortgage broker groups. Financial details of the transaction were not disclosed.

Key elements of Vow have approved the wealth manager's offer, representing some 40 per cent of the company's shares, including directors, chief executive Tim Brown and Macquarie Bank, the largest shareholder. The board has recommended that shareholders also accept the buyout proposal. 

At present, Vow has a total size of approximately A$18 billion ($16.8 billion), according to Mark Bouris, executive chairman of YBR. Bouris also noted that taking Vow in is part of the company's goal to "become a leader in the non-bank segment."

A general meeting is scheduled for mid-July 2014 to discuss the matter.