IOOF Holdings has revealed that it is the mystery bidder for wealth management platform provider HUB24. Negotiations are at an early stage and may not lead to a transaction, but according to HUB24’s announcement, a price of $2.75 has been offered. This equates to a market capitalisation of $144m and an enterprise value of $130m (after deducting net cash of $14m). We expect that IOOF will ultimately need to pay a higher price.
HUB24 runs a platform for wraps and separately managed accounts. The platform is highly regarded, being ranked third overall out of 22 platforms by Investment Trends in 2014, and being named as best for Tablet/Smartphone Access.