Hargreaves Lansdown to be Acquired for £5.44bn
- Hargreaves Lansdown, a leading investment platform, has agreed to a £5.44 billion takeover led by a consortium that includes Abu Dhabi's wealth fund.
- The acquisition announcement coincided with Hargreaves Lansdown revealing a 4% increase in its underlying pre-tax profit.
- This acquisition highlights the strong appeal of Hargreaves Lansdown as a trusted brand in the financial services sector.
Hargreaves Lansdown (HL), a leading FTSE 100 investment firm, has reached an initial agreement for a takeover valued at £5.44 billion. The bidding consortium comprises prominent firms including buyout giant CVC, Nordic Capital, and Platinum Ivy, a subsidiary of the Abu Dhabi Investment Authority (ADIA). This decision follows extended negotiations after HL's directors previously rejected an initial offer of 985p per share. Chairwoman Alison Platt characterized the deal as an "attractive opportunity" for shareholders, emphasizing the immediate cash value it provides, which may not be attainable through the company's long-term strategic execution. The firm, established in 1981, is recognized as the UK's largest DIY investment platform, boasting approximately 1.9 million customers. The consortium has expressed its commitment to aligning with HL's management, acknowledging the need for significant investment in technology to enhance the company's offerings and resilience. This transformation is seen as crucial for driving HL's future growth and development. In conjunction with the takeover news, HL reported its financial results for the year ending June 30, revealing an underlying pre-tax profit of £456 million, marking a 4% increase from the previous year. Analyst Vivek Raja from Shore Capital Markets indicated that shareholder approval for the deal is anticipated, suggesting a positive outlook for the acquisition's progression.