Managed Accounts to merge with Linear

27-Sep-2017

By Sarah Kendell

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Managed discretionary account operator Managed Accounts Holdings has announced it has submitted a proposal to merge with platform and administration provider Linear Financial Holdings.

In a statement, the group said the transaction would involve acquiring 100 per cent of the shares of Linear and would be “transformative” for both groups, creating more scale and an extended suite of products and services for the independent adviser market.

“The proposal has the unanimous support of the Linear board and is being recommended by the Linear board to Linear shareholders,” the group said.

The purchase would see the merged entity hold $11 billion in funds under management with a combined revenue of approximately $14.7 million.

“Linear’s and Managed Accounts’ products and services are highly complementary, creating the potential for the merged entity to enhance its product and service delivery to existing clients and grow revenue in the stockbroking and institutional markets,” Managed Accounts said.

The company added that its recent investment in additional sales and distribution resources meant that the merged entity would be well positioned to attract new clients.

Managed Accounts executive chairman Don Sharp said the purchase was a complementary one given that Linear was a leading provider of platform solutions in the Australian market.

“We believe bringing together these two businesses will provide existing and future clients with enhanced platform and administration services,” he said.

Linear managing director Chris Hipkin added that the merger provided an attractive proposition to the clients of both businesses.

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