AMP's acquisition of the Cavendish Group marked the beginning of a major push into the SMSF sector, while in the same month IOOF launched its bid for Plan B. Both plays took the numbers one and two positions in this year’s Top Five List for acquisitions.
1. AMP/Cavendish
AMP consolidated its position in the self-managed superannuation fund (SMSF) market in July when it announced the acquisition of Cavendish Group.
Cavendish provides SMSF administration, investment portfolio administration and actuarial services to SMSF trustees.
The acquisition was accompanied by the announcement of a new business unit, AMP SMSF, which is led by AMP head of integration Paul Sainsbury.
Cavendish slots in alongside SMSF specialists Multiport, Ascend and Super IQ in the AMP SMSF business unit.
2. IOOF/Plan B
Another acquisition announced in July was IOOF’s friendly takeover bid for wealth management firm Plan B. The directors of Plan B recommended that shareholders accept the all-cash offer of 60 cents a share.
The offer was a 33 per cent premium for Plan B shareholders as of 12 July, and represented a total consideration of $49.1 million.
As of 16 November, IOOF owned 100 per cent of the shares of Plan B. In an announcement posted on the ASX, IOOF confirmed it had completed the “compulsory acquisition” of all the Plan B shares it did not already own.
The acquisition of Plan B has added $2.2 billion to IOOF’s funds under management.
3. Bendigo and Adelaide Bank/Southern Financial
Bendigo and Adelaide Bank announced on 26 November that it had entered into an agreement to acquire the loan book and assets of Southern Financial Group.
A Bendigo statement on the ASX said the bank had entered into a non-binding heads of agreement with Southern Financial in a transaction worth $290 million.
Subject to satisfactory due diligence, commercial arrangements and necessary consents, Bendigo said it expected to finalise a binding agreement before the end of this year.
4. CCP Bidco/Cleaview Wealth
Control of Cleaview Wealth passed to CCP Bidco in September after its takeover offer was increased from 50 cents to 55 cents per share (with a 4 cent fully franked dividend).
Despite concerns from some shareholders that the offer was well below KPMG’s valuation of between 68 and 74 cents per share, CCP Bidco’s stake in Clearview subsequently increased to 79.7 per cent when the revised offer closed on 5 October.
CCP Bidco is made up of a consortium of investors including private equity company Crescent Capital and Macquarie Private Equity.
The takeover has resulted in a raft of changes to the Clearview board, with CCP Bidco appointing six new directors to the nine-member board.
5. Rubik/COIN Software
The Australian financial planning software market also saw consolidation in 2012, with global financial technology and software provider Rubik acquiring COIN Software from Macquarie’s Banking and Financial Services Group in August.
Rubik chair Craig Coleman noted at the time that the acquisition was “strategic and financially sound” and would “establish Rubik Financial as a leader in financial planning software”.
As part of the agreement, Macquarie will continue to service the majority of COIN’s boutique (independent financial advice) clients under a licence from COIN.
Rubik paid $23.75 million to fund the acquisition, and there will be a further ‘net tangible assets’ adjustment payable in cash later next year.
Rubik also appointed former Asgard boss Wayne Wilson as the new head of COIN software.
