The acquisition will help FNZ to expand its product and service offering in both wealth management and capital markets
Image: GBST's board in favour of FNZ's bid for acquisition. Photo: Courtesy of Pete Linforth/Pixabay
UK-based fintech company FNZ has signed a deal to acquire Brisbane-based financial technology firm GBST for A$269m (£152m).
As part of the agreement, FNZ will pay A$3.85 (£2.18) in cash for each share of GBST. The deal represents 94.9% premium for GBST’s shares on 11 April 2019, when Bravura Solutions offered a bid to buy the company for A$172m (£97.5m).
Founded in 1983, GBST offers administration and transaction processing software for retail wealth management organisations and global and regional investment banks. The company operates from locations across Australia, Asia, Europe and North America.
The acquisition could be closed in November 2019
The shareholder meeting could take place this October and the deal is expected to be closed in November 2019. Deutsche Bank is acting as exclusive financial advisor and Allens acting as legal advisor to GBST on the transaction.
GBST chairman Allan Brackin said: “We are pleased to have now entered into a binding agreement for FNZ to acquire GBST at A$3.85 per share on terms acceptable to the Board.
“FNZ’s offer represents a significant premium and provides a high degree of certainty of value for our shareholders through the cash offer and limited conditionality.”
FNZ managing director Adrian Durham said: “We are pleased to have reached an agreement with the GBST Board that will deliver a great outcome for their shareholders. GBST has well established products, talented employees and deep relationships with major financial institutions in Australia and internationally.
“We look forward to working with the company to expand its product and service offering in both wealth management and capital markets, aligned with our global mission of improving investment and retirement outcomes for all people.”
Earlier this month, FNZ acquired UK-based wealthtech firm JHC Systems and German investment platform ebase.
JHC, based in London, provides the core technology platform to several UK and Ireland’s wealth managers. ebase was acquired from Commerzbank subsidiary Comdirect Bank for €154m (£139m).