HUB24 to acquire client portal company

ASX-listed platform business HUB24 announced on Wednesday that it has entered into an agreement to acquire myprosperity.

HUB24 will acquire 100 per cent of the ordinary shares of myprosperity, with myprosperity shareholders to receive $40 million of HUB24 ordinary shares. The 1.4 million shares will be issued at $27.63.

Subject to conditions and performance hurdles being met over three years, HUB24 will issue a further $11.5 million in ordinary shares.

HUB24 said it expects the acquisition to deliver long-term value by accelerating its “platform of the future strategy”, supporting its current growth trajectory and strengthening its “competitive advantage” to capture market share and create new growth opportunities.

HUB24 managing director Andrew Alcock said: “We’re excited to be announcing the acquisition of myprosperity, who are a leading provider of client portal technology for advisers and accountants and welcome Peter McCarthy and his talented team to HUB24”.

“This acquisition will consolidate our market-leadership position and accelerate the delivery of our platform of the future strategy, strengthening our competitive advantage to capture further market share and new growth opportunities.”

Myprosperity is a provider of client portals for financial advisers and accountants, delivering a holistic view of household wealth, providing secure digital engagement, and facilitating collaboration between clients and financial professionals.

Speaking to ifa, Mr Alcock said the deal is a “strategic acquisition” that would benefit both platforms.

“It’s the right time in that business for us to help support that business grow and leverage that asset inside of the HUB24 stable,” he said.

“It’s about continuing with their journey but enhancing the journey we’ve been on and delivering a better outcome faster than we would have had we not purchased that business.”

Initially, myprosperity will be integrated with HUB24 custodial and non-custodial platforms, with HUB24 adding that development of a single client portal for the entire HUB24 group portfolio of products and services would follow.

“The need for clients to see the whole picture is becoming more and more paramount and advisers want to deliver holistic advice to their clients, but they need to do that with information and data,” Mr Alcock told ifa.

“Bringing it all together in a portal and leveraging the data feeds we’ve got in Class and HUB24 to enhance the richness of myprosperity means that clients will get a better advice experience and advisers can see their whole portfolio and think about the bigger picture.”

HUB24 added that myprosperity will operate as a separate business unit within the HUB24 group, maintaining the myprosperity brand and leadership team, but benefiting from HUB24’s technology infrastructure and shared services.

Peter McCarthy, founder and executive director of myprosperity, said: “The team at myprosperity are delighted to be joining the HUB24 group.

“We look forward to working together to continue to deliver efficiency, enhanced client engagement, and compliance support for financial advisers and accountants and leveraging combined capabilities to deliver benefits for both new and existing clients.”