A consortium of investors led by CVC Group is set to acquire Hargreaves Lansdown, the renowned UK investment firm, for a takeover offer equivalent to £5.4 billion ($6.9 billion).
Abu Dhabi’s sovereign wealth fund and private equity investor Nordic Capital are also part of the CVC consortium.
Hargreaves Lansdown needs technological investment
Hargreaves Lansdown shareholders will get 1,110 British pence per share and a dividend of 30 pence per share under the deal. Alison Platt, Chair of Hargreaves Lansdown, said the offer “represents an attractive opportunity for HL Shareholders.”
Pev Hooper from CVC Private Equity Group, Emil Anderson from Nordic Capital Advisors, and Hamad Shahwan Aldhaheri from the Abu Dhabi Investment Authority stated that Hargreaves Lansdown “requires substantial investment in an extensive technology-led transformation to improve HL’s proposition and resilience, and to drive the next phase of HL’s growth and development. We look forward to partnering with HL’s management to accelerate its transformation plan – including investment in technology infrastructure, digital channels, and service enhancement – all with client value, service, speed of innovation, and HL’s clear purpose at the core.”
CVC put OANDA for sale
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The news of a Hargreaves Lansdown acquisition by CVC Group follows the recent report that the CVC has put OANDA for sale. The potential sale valuation remains unclear.
OANDA, owned by CVC Capital Partners since 2018, offers trading in foreign exchange, equities, commodities, and cryptocurrencies. With more than 100,000 active traders, it is expected to record revenues of approximately $175 million (£138 million) this year.
Founded in 1995, Oanda has established itself as a key player in the foreign exchange industry. The company has been at the forefront of online trading, providing retail traders with access to a broad range of financial instruments. Over the years, Oanda has built a strong reputation for innovation, transparency, and reliability, contributing significantly to the evolution of the FX trading landscape.
In recent years, Oanda has changed hands several times. CVC Capital Partners, an Amsterdam-listed buyout firm, acquired Oanda in 2018. The acquisition, valued at $200 million, marked a significant move for CVC into the online trading sector. Before CVC, the company was owned by private equity firm Pacific Century CyberWorks (PCCW), a Hong Kong-based telecommunications and IT company. PCCW acquired OANDA in 2016, which was part of its strategy to diversify its portfolio into the fintech and online trading sectors.
