INQ buys HUB24 for $20 million
Tuesday, 26 October 2010 12:50pm
By Media release | In Financial Planning
Boutique stockbroker Investorfirst has acquired unified managed account (UMA) provider HUB24 in a scrip-for scrip deal worth $20 million.
Investorfirst said the transaction was part of its shift towards becoming an "integrated financial services house" and "the first non-institutional integrated platform and broking financial services utility" in Australia.
HUB24's portfolio service enables clients to benefit from cost effective executions and management of trades while retaining beneficial ownership of securities for improved tax efficiency.
The service acts as model manager recommending the model portfolio, broker executing the trades and sub-custodians providing custodial and depository services for investors.
It has 23 model managers, the largest offering of SMA managers in the country, and offers users a combination of a wrap platform and a managed discretionary account service.
Under the terms of the agreement, HUB24 shareholders will receive almost 267 million in new Investorfirst shares worth 7.5 cents each.
Investorfirst will subsequently seek to raise an additional $12.5 million via a new capital raising with directors and executives of both companies intending to subscribe to as much as 23 per cent of the new issue.
HUB24 managing director Darren Pettiona will assume the role of managing director of Investorfirst.
The deal is subject to approval by Investorfirst shareholders at the company's upcoming AGM.
This story was found at: http://www.financialstandard.com.au/news/view/30431
Printed: Friday, 18 May 2012 5:24am