20th May 2021 17:54
Alpha Financial Markets Consulting PLC - London-based consultancy for asset and wealth management industry - Agrees to buy US-based provider of specialist consultancy services to the alternative investment industry Lionpoint Holdings Inc for up to USD90 million.
The cash free, debt free deal will be a combination of cash and new Alpha FMC shares. The maximum total cash payable by Alpha FMC will be USD73.6 million, to be funded from existing cash resources. The remainder will come from GBP31 million fundraising from pre-emptive placing of 9.6 million shares, with GBP24.5 million set aside for the acquisition.
Chief Executive Euan Fraser says: "We are delighted with the acquisition of Lionpoint, which is a fantastic addition to our group and aligns strongly with Alpha FMC's stated strategy of growing our capabilities in the rapidly-growing alternatives investment space and our footprint in North America.
"Lionpoint brings a complementary, blue chip client base, a focus on leading technology solutions and key vendor partnerships, and a strong global management team aligned with Alpha FMC's own culture. The transaction is a significant step on our journey to doubling the business in four years, and we look forward to working with Lionpoint and growing our businesses together."
Expects deal to be significantly accretive to earnings in first financial year of ownership and is expected to generate returns ahead of the company'd cost of capital at comparable margins.
Current stock price: 320.50 pence
Year-to-date change: up 41%
By Paul McGowan; [email protected];
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