Generation takes 37% of Lonsec
Generation Development Group (GDG) has announced the acquisition of a 37% stake in research and ratings house Lonsec.
The company has announced to the Australian Securities Exchange (ASX) that it has picked up the holding in Lonsec allied to the development of a new annuity product.
Commenting on the transaction, GDG chairman, Rob Coombe said the firm was embarking on significant step in progressing its growth strategy through the combination of organic and inorganic growth initiatives.
“We have entered agreements that will result in GDG acquiring a 37% interest in Lonsec,” he said.
Coombe said that the investment in Lonsec would provide GDG with a highly strategic foothold in an attractive market niche of the financial services and wealth management market.
“We believe Lonsec is well-positioned for future growth supported by strong industry and regulatory tailwinds and will provide access to resilient recurring revenue streams from its core research offering,” Coombes said.
The transaction involves a total up-front acquisition consideration of $20.1 million for a 37% stake in Lonsec.
Recommended for you
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.
The latest monthly Bank of America global fund manager survey has found investors are starting to shift cash into bonds as cash allocations reach a three-year low.
AUSIEX analysis has discovered the net traded value of Australian dollar fixed income ETFs more than doubled from January to April, reflecting growing investor demand.
Rather than taking a set-and-forget approach to credit investing, this investment specialist sheds light on why it is time for active management in the asset class.
