Hargreaves Lansdown Acquired for $6.9 Billion
2024-08-09 00:00- Hargreaves Lansdown, the largest stockbroker in the UK, has agreed to a takeover deal valued at approximately $6.94 billion.
- The acquisition will be led by a consortium that includes CVC Capital Partners.
- This move marks a significant development in the UK financial services sector.
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Insights
LONDON — Hargreaves Lansdown, the UK's largest stockbroker, has accepted a takeover bid valued at £5.4 billion ($6.9 billion) from a consortium of investors, including CVC Group. Shareholders will receive 1,110 British pence per share along with a 30 pence dividend, marking a significant 54% premium over the share price prior to the initial offer. Following the announcement, Hargreaves Lansdown's shares rose approximately 2.2% in morning trading. The consortium's latest offer comes after Hargreaves Lansdown previously rejected a £4.7 billion bid in May, which was priced at 985 pence per share. Analysts at Jefferies noted that while the current offer is attractive, they believe there is greater long-term value in the company. They anticipate that the takeover will proceed, bolstered by support from major shareholders, including the company's founders. In September 2023, Hargreaves Lansdown unveiled a new strategic direction aimed at enhancing client focus, accelerating innovation, and implementing cost-saving measures. The consortium, which includes representatives from CVC Private Equity Group, Nordic Capital Advisors, and the Abu Dhabi Investment Authority, emphasized the need for substantial investment in technology to strengthen Hargreaves Lansdown's market position and drive future growth. As the deal progresses, stakeholders will be watching closely to see how the proposed changes will impact the company’s operations and its competitive standing in the investment platform sector.
Contexts
On August 9, 2024, Hargreaves Lansdown, a major investment platform based in Bristol, announced its agreement to a £5.44 billion takeover by a consortium that includes a wealth fund from Abu Dhabi. This acquisition is pending shareholder approval and is expected to finalize by early 2025. The news of the impending takeover follows a report that Hargreaves Lansdown has seen a 4% rise in its underlying pre-tax profit, demonstrating its robust market position. The move is part of a broader trend of consolidation in the UK financial services industry and indicates the growing interest in reputable financial brands to drive future growth.
