HUB24 and Class Limited have entered into a scheme implementation deed 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.
The Australian Securities Exchange (ASX)-listed HUB24 said in an announcement the transaction was expected to accelerate HUB24’s platform strategy, and consolidate the group’s position as a provider of integrated platforms, technology and data solutions for financial advisers, accountants, private banks, licensees, stockbrokers and their clients.
The combined business would be also expected to provide a compelling and unique competitive advantage and diversification revenue.
Following this, the firm said it was intended that Class would operate as a business unit within the HUB24 group under the Class brands and leadership team.
The details of the proposed transaction are:
- Class shareholders will receive 1 ordinary HUB24 share for every 11 ordinary Class shares held, plus $0.10 per ordinary Class share
- The implied total consideration represents a 52.8% premium based on the 1-month VWAP for both companies up to 15th October 2021.
The Class board of directors unanimously recommended that Class shareholders should vote in favour of the scheme, subject to an independent expert concluding that the scheme was 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,” HUB24 managing director Andrew 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.”
Andrew Russell, CEO and managing director of Class said: “The combined strengths of Class and HUB24 will further accelerate the transformation of Class and provide exciting opportunities for future growth.
“We’re pleased Class will continue to run as a separate business unit within the HUB24 group so our team can continue to deliver on our strategy, whilst leveraging our deep technology expertise to deliver superior outcomes to both sets of customers.”