CVC Advisers, Nordic Capital and Abu Dhabi Investment Authority Lead the Deal

  • Hargreaves Lansdown agrees to $6.9 billion takeover by private-equity consortium
  • CVC Advisers, Nordic Capital and Abu Dhabi Investment Authority involved in the deal
  • Offer of 1,140 pence in cash for each share
  • Board recommends approval subject to conditions
  • Takeover expected to complete in Q1 2025
  • Pretax profit down from previous year but ahead of estimates
  • Revenue beats expectations at £764.9 million

Hargreaves Lansdown, a retail-investment platform, has agreed to a takeover offer from a CVC Advisers-backed private-equity consortium that values the company at £5.44 billion ($6.94 billion). The consortium, which also includes Nordic Capital and a subsidiary of the Abu Dhabi Investment Authority, will offer shareholders 1,140 pence in cash for each share. The board considers this opportunity attractive and intends to unanimously recommend approval, with the takeover expected to complete in the first three months of 2025, subject to conditions. This news came alongside the company’s fiscal 2024 results, showing a pretax profit of £396.3 million (down from £402.7 million in fiscal 2023 but ahead of a £380 million estimate). Revenue for the year ended June 30 rose to £764.9 million from £735.1 million the previous year, beating expectations of £755.4 million.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about the takeover offer for Hargreaves Lansdown, including details on the consortium involved, the valuation, and the board’s recommendation. It also includes financial data such as pretax profit and revenue for fiscal 2024, as well as a comparison to previous years. The article is free from sensationalism or opinion masquerading as fact.
Noise Level: 6
Noise Justification: The article provides relevant information about the takeover offer and financial results of Hargreaves Lansdown, but it lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge for readers.
Public Companies: Hargreaves Lansdown (HL)
Private Companies: CVC Advisers,Nordic Capital,Abu Dhabi Investment Authority
Key People: Elena Vardon (Writer)

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Financial Relevance: Yes
Financial Markets Impacted: Hargreaves Lansdown, CVC Advisers-backed private-equity consortium, Nordic Capital, Abu Dhabi Investment Authority
Financial Rating Justification: The article discusses a takeover offer for Hargreaves Lansdown, a retail-investment platform, and its financial results. This impacts the involved companies and their shareholders, making it relevant to financial topics and markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses a takeover offer for Hargreaves Lansdown, which has a positive impact on its shareholders but does not cause any major disruptions or crises.
Deal Size: The deal size is $6940000000.
Move Size: No market move size mentioned.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

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