Hargreaves Lansdown To Be Acquired For £5.4bn By Private Equity Consortium

Hargreaves Lansdown, the prominent UK-based investment platform, is set to be acquired by a consortium of private equity heavyweights, the company announced Friday.

Harp Bidco Limited, a newly formed company owned by CVC Private Equity Funds, Nordic Capital, and Platinum Ivy, is set to acquire the company in a deal valued at approximately £5.4 billion.

Hargreaves Lansdown has been in discussions with CVC, Nordic Capital, and Platinum Ivy, a subsidiary of the Abu Dhabi Investment Authority for months regarding a potential takeover deal.

Under the terms of the agreement, Hargreaves Lansdown shareholders will receive 1,140 pence per share, comprising a cash consideration of 1,110 pence and a dividend of 30 pence per share for the financial year ending June 30, 2024.

The total offer represents a premium of over 50% to the company’s average share price before the offer period began, signaling confidence in Hargreaves Lansdown's future prospects.

The acquisition is backed by the board of Hargreaves Lansdown and is expected to accelerate the company's growth by leveraging investments in technology and operational resilience.

The private equity consortiums said it aims to transform the company into a more competitive player in the evolving direct-to-consumer investment market, with a focus on enhancing digital channels and financial products.

“HL Board believes the Cash Offer represents an attractive opportunity for HL's shareholders,” Hargreaves Lansdown stated.

The company also reported its full-year results today, with total revenue climbing 4% to £764.9m and underlying costs rising 8% to £338.5m.

Underlying profit before tax increased by 4% to £456m, while total assets under administration grew to £155.3bn, representing a 16% rise. Hargreaves Lansdown said it currently has 1,882,000 active clients.