Investment platform developer HUB24 Limited (ASX: HUB) and Class Limited (CL1: ASX) have today entered into a Scheme Implementation Deed (SID) for the acquisition by HUB24 of 100% of the ordinary shares in Class by way of a scheme of arrangement between Class and its shareholders (Scheme).
The proposed transaction is expected to accelerate HUB24’s platform of the future strategy, consolidating the Group’s position as a leading provider of integrated platforms, technology and data solutions for financial advisers, accountants, private banks, licensees, stockbrokers and their clients. The combined business will provide a compelling and unique competitive advantage and diversification of revenue.
HUB24 and Class are highly complementary businesses with a track record of innovation and aligned culture and values, focussed on the delivery of solutions that support professional advisers and accountants to implement investment, tax and strategic advice.
By leveraging the combined capabilities there is an opportunity to deliver increased value, efficiency and product solutions for both existing and new customers. It is intended that Class will operate as a business unit within the HUB24 group under the Class brands and leadership team.
The acquisition of Class is expected to be eight per cent Earnings Per Share (EPS) accretive (excluding revenue synergies and one-off implementation costs) to HUB24 shareholders by FY23 and deliver cost synergies of approximately $2 million p.a.
HUB24 Managing Director, Andrew Alcock, said the Class Board of Directors has unanimously recommended that Class shareholders vote in favour of the Scheme, subject to an independent expert concluding that the Scheme is in the best interests of Class shareholders and in the absence of any superior proposal.
We’re excited to be announcing the proposed acquisition of Class Limited with the full support of the boards of both companies. Class are market leaders in the establishment, management and administration of wealth and SMSF solutions,” Mr Alcock said.
“The completion of this transaction will combine two exceptionally talented teams with a common purpose to empower better financial futures for Australians and provide a unique range of products and services for financial professionals and their clients.”
HUB24 Limited is the owner of the award- winning HUB24 platform, HUBconnect business and Xplore platform. HUB24 offers advisers and their clients a comprehensive range of investment options, including market-leading managed portfolio solutions, and enhanced transaction and reporting functionality.