Generation Development Group (ASX:GDG) agreed to acquire investment professionals and advice specialists Evidentia Group Holdings for an up-front consideration of AU$320 million, according to a Monday filing with the Australian bourse.
The acquisition, aimed at strengthening GDG's presence in the managed accounts market, will be partly funded by a fully underwritten equity raising of about AU$287.9 million, the filing said.
The deal will combine GDG's existing Lonsec Investment Solutions business with Evidentia and will result in over AU$25 billion in funds under management, the filing added.
The acquisition is expected to be low double-digit accretive to GDG's earnings per share in fiscal 2026, excluding synergies, with no immediate disruption to financial advisers and clients, the company said.
Under the deal, GDG will pay AU$244.9 million in cash and issue AU$75.1 million worth of new shares to Evidentia's shareholders.
Evidentia Chief Executive Peter Smith will take on the role of executive chairman of the newly merged entity.
GDG expects to complete the acquisition in February 2025, the company added.
The company also requested that its securities be placed on a trading halt until an announcement related to the finalizing and executing of the institutional placement and entitlement offer is made.
The trading halt will remain in place until the start of trading on Feb. 12 or when the company makes the announcement.
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