HUB24 completes deal to acquire Class
HUB24 has confirmed the acquisition of Class as the platform provider looks to cement itself as a market leader in the wealth and SMSF sector.
HUB24 and Class have inked a Scheme Implementation Deed, a move set to establish HUB24 as a leading provider of platform, data and technology solutions for the wealth and SMSF industries.
The consideration to be offered to Class shareholders 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.
Under the scheme, Class shareholders will receive one HUB24 share for every 11 Class ordinary shares held and a cash amount of $0.10 for every Class ordinary share held, based on the last trading price of HUB24 shares on 15 October 2021.
In a statement issued on Monday, 18 October, Class confirmed its board of directors has unanimously recommended the scheme, in the absence of a superior proposal.
Each Class director intends to vote all shares that they control in favour of the scheme, as does Spheria Asset Management which, with control of approximately 19.99 per cent of the ordinary shares, is the largest Class shareholder.
“The Class board of directors has carefully considered the proposal and believes it represents compelling value for Class shareholders,” said Class chairman Matthew Quinn.
“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 will continue to operate as a standalone business unit within the HUB24 group, with the Class management team invited to join HUB24 upon completion of the transaction.
“Class will be run as a standalone business within the HUB24 group, leveraging our deep technology expertise to deliver superior outcomes to both sets of customers,” Class CEO Andrew Russell confirmed.
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.