Hub24 acquires Agility
Hub24 has announced to the Australian Securities Exchange (ASX) today that it is acquiring 100 per cent of its financial services technology partner, Agility Applications Limited.
The company said it had executed a binding agreement with respect to the transaction.
The announcement described Agility as being a profitable business founded in 2007 by Craig Apps and Paul Biggs and a specialist provider of application, data exchange and technology products, and services to the financial services industry.
Agility provides a financial services industry data hub between advice licensees, product providers and technology partners, which collectively represents over $200 billion of client assets and drives many of the applications and reporting tools available within the Agility adviser desktop used by over 2,300 users.
It said Agility customers included approximately 40 per cent of Australia's stockbroking market and the largest third-party clearing house in Australia, in addition to fintech and platform providers including HUB24.
The ASX announcement said HUB24 would pay the vendors consideration as follows:
- $6 million on completion, made up of $2 million in cash and $4 million in HUB24 ordinary shares issued at the 20 day VWAP of $5.41;
- Up to a further $5.5 million in cash and $3.5 million in HUB24 ordinary shares, subject to certain conditions and performance hurdles to be met progressively over the next three years;
- Cash consideration for the acquisition to be paid from cash reserves; and
- Any shares issued are subject to voluntary escrow and would be issued by reference to the 20 day VWAP prior to the relevant issue date.
HUB24 managing director Andrew Alcock said the acquisition would complement HUB24's core offering to independently-minded advisers, and deepen HUB24's sustainable competitive advantage.
Recommended for you
Financial advice platform Otivo has made an experienced appointment from the US as its head of product strategy.
Apostle Funds Management has appointed the newly created position of director, head of wholesale as the firm expands its Australian footprint in the wholesale sector.
Recruitment manager Robert Half has shared the most in-demand roles in financial services that firms are finding difficult to fill, driven by ASIC’s growing focus on risk and compliance.
ASIC chief executive, Warren Day, is among senior executives to depart the corporate regulator amid changes to its leadership team.