Link in major UK acquisition

Australia’s dominant superannuation administration company, the publicly-listed Link Group has entered into a major UK acquisition.

The company announced today it had entered into a binding agreement to acquire key UK platform provider Capita Asset Services AS for £888 million (A$1,493 million), with the acquisition being subject to mandatory regulatory approvals.

If approved, the transaction is expected to complete by 31 December 2017.  

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Link’s announcement described CAS as “an established platform of scale providing a broad range of financial and administrative services in the UK and Europe, operating across four business segments – fund solutions, shareholder solutions, corporate and private client solutions and banking and debt solutions.

It said that in the 12 months to 31 December 2016, CAS generated revenue and Operating EBITDA of £316 million (A$532 million) and £72 million (A$121 million), respectively.  

The announcement said the acquisition would be partially funded via a fully underwritten A$883 million, four for 11 pro rata accelerated renounceable entitlement offer with retail rights trading.

It said the balance of the Acquisition would be funded through a combination of existing cash and available debt facilities, including a new £485 million acquisition debt facility.   

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