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.
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