Hargreaves Lansdown accepts $6.9 billion buyout offer

Hargreaves Lansdown, the UK's largest stockbroker, has announced its agreement to a $6.9 billion takeover offer from a consortium of private investors, including CVC Group, Abu Dhabi's sovereign wealth fund, and Nordic Capital. The deal, which is contingent upon shareholder approval, has received a recommendation for acceptance from the Hargreaves Lansdown board. Chair Alison Platt emphasized that the cash offer presents an attractive opportunity for shareholders to secure immediate value for their investments. The consortium, operating under the name Harp Bidco Limited, is structured as a private limited company and is equally owned by CVC Private Equity Funds, Nordic Capital Vehicles, and Platinum Ivy, a subsidiary of Abu Dhabi's ADIA fund. In their statement, the consortium highlighted the need for significant investment in technology to enhance Hargreaves Lansdown's offerings and ensure its future growth and resilience. The managing partners of the consortium expressed confidence in their ability to support Hargreaves Lansdown through its transformation, citing their extensive experience in investing in regulated financial services. They aim to improve customer experiences and build a stronger business model for the company. If the offer is approved by shareholders, Hargreaves Lansdown will be delisted from the London Stock Exchange. The deal is expected to be particularly lucrative for the company's founders, Peter Hargreaves and Stephen Lansdown, who hold significant stakes in the firm. Shareholders will have the option to receive cash payouts or convert their shares into the private entity.