Investment and superannuation platform Hub24 will acquire myprosperity, which provides secure client portals for accountants and advisers, for $40 million in a deal expected to be completed by the end of June.
In a statement released on the Australian Securities Exchange, Hub24 indicated myprosperity shareholders would receive a total consideration of $40 million of Hub24 shares, with up to a further $11.5 million being issued over the next three years subject to certain conditions and performance hurdles being met over that time.
The transaction will be completed before 30 June, with myprosperity operating as a separate business unit within the Hub24 group under the myprosperity brand and leadership team.
Hub24 managing director Andrew Alcock said the acquisition aligns with the company’s strategy of offering adaptable and scalable solutions to meet the evolving demands of the financial advice and wealth management sectors.
“[Myprosperity] is a high-value strategic asset with an established capability and client base. It’s a market-leading client wealth portal that’s really positioned for growth moving ahead,” Alcock told attendees at a briefing on the acquisition.
“Increasingly financial professionals are looking for digital client engagement portals as opposed to having to go through multiple front-end systems for different providers with clients.
“So [the acquisition of myprosperity] really resonates in terms of that demand and accelerates our platform of the future strategy.”
He said myprosperity will initially be integrated with Hub24’s custodial and non- custodial platforms, but integration with its full range of products and services, such as Class, NowInfinity and HubConnect, will be accessible through a single secure front-end over time.
Myprosperity founder and executive director Peter McCarthy stated his eagerness to collaborate with the Hub24 team to improve the client engagement experience in the financial advice sector.
“The team at myprosperity are delighted to be joining the Hub24 group. We look forward to working together to continue to deliver efficiency, enhanced client engagement and compliance support for financial advisers and accountants and leveraging combined capabilities to deliver benefits for both new and existing clients,” McCarthy said.