An international consortium has agreed to acquire British investment platform Hargreaves Lansdown in a deal worth £5.4bn ($6.9bn).
The consortium comprises private equity firm CVC Capital Partners Abu Dhabi’s sovereign wealth fund ADIA and Swedish private equity firm Nordic Capital.
It offered to pay £11.40 in cash for each Hargreaves Lansdown share. The offer includes a final dividend of 30p for the last financial year.
Hargreaves Lansdown is one of the leading platforms for private investors in the UK. The company was founded more than 40 years ago by Peter Hargreaves and Stephen Lansdown.
It was listed in 2007.
The company now manages more than £120bn of investments for more than 1.7 million clients. It employs more than 2,000 people.
According to Financial Times report, Hargreaves, who holds nearly 20% of the company, will sell around half of its stake. He is estimated to receive £534mn from the sale, people with knowledge on the process told the publication.
On the other hand, Lansdown will divest his entire holding of near-6%.
He told the Financial Times: “As with all such deals there is plenty of work to do, but I am pleased that we now have certainty and everyone can get on with their lives.”
With this deal, Hargreaves Lansdown will become the latest company to delist from the London stock exchange.
The deal is expected to close in the first quarter of next year, subject to necessary approvals.
