Investment and superannuation platform Hub24 will fully acquire Class under a scheme of arrangement that values the latter at close to $390 million and has been unanimously recommended by its board of directors.
The firms today announced the acquisition, under which Class shareholders will receive one Hub24 share for every 11 Class ordinary shares held, including a cash amount of $0.10 for every Class ordinary share held, based on the last trading price of Hub24 shares on 15 October.
This arrangement values Class at a price of $3.11 per share and an implied market capitalisation of $386 million, based on the last trading price of Hub24 shares on 15 October.
Class stated its board of directors have unanimously recommended the scheme and its directors will also vote all shares they control in favour of the scheme.
Class chairman Matthew Quinn said: “The Class board of directors has carefully considered the proposal and believes it represents compelling value for Class shareholders. The structure of Hub24’s proposal provides an exciting opportunity for our shareholders to maintain exposure to Class’s growing business, while also sharing in any future upside and combination benefits with Hub24.”
Class chief executive Andrew Russell said the business will run as a separate unit after the acquisition, while benefiting from it.
“The combined strengths of Class and Hub24 will further accelerate the transformation of Class and provide exciting opportunities for future growth,” Russell said.
“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.”
Hub24 managing director Andrew Alcock said both companies were eager for the acquisition to occur.
“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,” 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.”
The acquisition is expected to be completed in by the end of February 2022.
