Platform provider Hub24 has announced it has executed an agreement to acquire a boutique licensee.
Under the arrangement, Hub24 will acquire 100 percent of the shares in dealer group Paragem.
The deal is expected to be completed in the next few weeks, subject to satisfaction of conditions, including that the acquisition arrangements are agreed between Paragem advisers and Hub24.
Hub24 said the acquisition of Paragem is consistent with its strategy to “pursue significant growth by partnering with quality independently-minded financial advisers.
“We were also determined to ensure any entry into the advice space would result in a further enhancement of Hub24’s rapid growth, diversification of the company’s revenue stream and continued improvements to platform functionality, which will be highly valued by the broader IFA market,” Hub24 chief executive Andrew Alcock said.
“In addition to providing our Hub24 retail products to advisers, we will continue to focus on our core business providing white labels to financial planning groups, accountants and stockbrokers whilst also developing and supporting the Paragem business.
“Hub24’s platform will enable Paragem advisers to act in the best interests of their clients,” Mr Alcock said.
Both Hub24 and Paragem will retain their existing brands and will continue to operate independently under the acquisition arrangement.
In addition, Paragem will retain its open architecture approach to approved products and platforms and Hub24 will maintain its focus on supporting the growth and prosperity of its existing licensee clients.
Details of the acqusition include a cash consideration of $1 million at completion, with a deferred cash payment at 12 months of up to $1 million (subject to customary adjustments) to be funded from existing cash resources.
In addition,the agreement includes a capped earnout consideration of up to an additional $6 million, subject to financial performance measured over three years and paid in Hub24 ordinary shares no later than 30 September 2017.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Sep 2018Independent advice will prosper but must be paid for: LovedayBy James Mitchell
- 21 Sep 2018Former ASFA policy advisor to boost FPA ranksBy Reporter
- 21 Sep 2018Aligned advisers in search of freedomBy Adrian Flores
- 20 Sep 2018Banned Perth adviser did not engage in dishonest conductBy James Mitchell
- 20 Sep 2018‘No advisers have been mistreated’: DalyBy James Mitchell
- 20 Sep 2018Beacon advisers held ‘ransom’ while IIOF money remains missingBy James Mitchell
- view all