Managed accounts platform Powerwrap has de-listed from the ASX and its chief executive and board have stepped down following the acquisition by Praemium.
In the next move of the off-market takeover, Praemium made payment of the 94% in acceptances on October 2 with the remaining 6% to be acquired under compulsory acquisition in November.
As a result, Powerwrap de-listed from the ASX last week and its chief executive Will Davidson, along with its non-executive directors, stood down, with the former chief executive of Bennelong Wealth Partners having led the company since 2018.
Praemium chief executive Michael Ohanessian thanked Davidson for his professionalism throughout the acquisition.
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"Under his leadership Powerwrap has developed a strong focus on client service and support, and we will work to continue that high level of service into the future," he said.
Praemium advanced a $55.6 million off-market takeover bid to acquire Powerwrap in early July and offered Powerwrap shareholders 7.5 cents per share cash and one Praemium share for every two Powerwrap shares.
The merger of the platform providers will create the second largest independent specialised platform provider with combined funds under administration just shy of $29 billion.
In addition, it is set to improve inflows, create a more a more diversified customer base, international reach and a larger more flexible balance sheet, which is expected to accelerate the disruption of the sector's incumbent platforms.
The merged group will have a number of important differentiators from those in the Australian platform market including being the only adviser platform that operates in Australia, the United Kingdom and various other offshore markets.
"The transformation of Powerwrap over the last two and a half years has now positioned the combined businesses to provide a unique and compelling platform proposition," Davidson said.
Talk of Powerwrap being acquired first began in 2017 when a trade sale process was conducted, identifying two key potential buyers. Shortly after, Powerwrap raised $19.4 million, one of several strategic options explored by its board at the time and what was ultimately determined to be in the best interests of shareholders.