The board of Easton Investments has formally recommended to shareholders that they accept HUB24’s proportional offer for the company arguing that it will deliver significant strategic benefits including the acquisition of Paragem meaning that Easton can become a leader in licensee and adviser services.
In target statement documentation released to the Australian Securities Exchange (ASX) Easton described Paragem as a strong strategic fit with Easton’s Wealth Solutions division which provide additional scale to support the development of technology to improve efficiencies and add new revenue generating services.
It said this was consistent with Easton’s strategic direction to become a leading non-institutional provider of adviser and licensee services.
“The strategic relationship with HUB24 is aimed at accelerating growth opportunities,” it said.
“Notably Easton’s plans to compete in the wealth training and continuing professional development market, as well as the potential to grow Easton’s adviser network.”
It said that there was an opportunity for Easton to become a leader in licensee and adviser services as it partnered with HUB24 to deliver efficient, cost-effective solutions and services to financial advisers, accountants and their clients.