Managed Accounts Holdings, a provider of managed accounts and administration solutions in Australia, has signed a non-binding agreement to purchase 100% of the shares in local rival Linear Financial Holdings for $42.5m.
The deal consideration will include up to $8m in cash, which will be funded through an equity capital raising, and a minimum of $14m of Managed Account scrip issued at $0.33 per share. The remaining $20.5m will be paid in cash and has already been set aside by Managed Accounts.
Go deeper with GlobalData
The merged group will have funds under administration of more than $11bn and will offer an extended product suite for the independent financial advisers, stockbrokers, investment managers and the institutional market.
The deal is subject to approvals from regulatory and shareholder approvals. Managed Accounts expects to realise synergies of $3.5m from the deal.
Managed Account executive chairman Don Sharp said: “Linear has been a leading provider of platform solutions in the Australian market for some time now. The merger is in line with our strategy to focus on merger and acquisition opportunities that are complementary and leverage both parties’ key services and capabilities. We believe bringing together these two businesses will provide existing and future clients with an enhanced platform and administration services.”
At the same time, Managed Account said that it signed a memorandum of understanding with advisory business Shaw and Partners to offer managed accounts solutions to clients.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
