HUB24 has acquired cloud-based accounting, investment reporting and administration software company Class in a move designed to broaden the investment platform providers footprint in the wealth management space.
HUB24 entered a scheme of arrangment Monday to purchase 100 per cent of the listed entity’s shares, which the company hopes will consolidate its position as a leading provider of platfrom, technology and data services to advisers, accountants, licensees, stockbrokers and retail investor clients.
Class will operate as a standalone business unit within the HUB24 group and retain the Class branding.
According to HUB24 the tie-up will deliver cost synergies of around $2 million per annum.
“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,” commented HUB24 chief executive Andrew Alcock.
“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.”
According to Class managing director and CEO Andrew Russell, the development gives Class an opportunity to grow while retaining independence.
“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,” he said.
Class shares rocketed from $1.80 to $2.86 to open trading Monday as news of the acquisition filtered through.