Baker McKenzie today announced it had advised Lonsec Holdings Pty Ltd (Lonsec) on the sale of 61.9 % of its issued capital to Generation Development Group Limited (GDG).
GDG has entered into a binding agreement to acquire the remaining 61.9% of Lonsec’s fully diluted share capital not already owned by GDG, which values Lonsec up to AUD 430 million enterprise value on a 100% basis.
Founded in 1994, Lonsec has grown to become one of Australia’s pre-eminent providers of investment research, product ratings and managed account solutions with its clients comprising a significant proportion of Australia’s leading fund managers, superannuation funds, advisory groups and wealth platforms.
Following GDG’s highly successful investment in Lonsec in 2020, the move to 100% ownership provides an opportunity for GDG to take full control of a familiar asset with further expected significant growth upside.
Lonsec has performed well since the initial investment, has been a strong contributor to GDG performance, and is expected to have a strong future growth outlook supported by regulatory tailwinds.
Under GDG ownership, Lonsec will continue to operate as a standalone entity with management continuing to implement the business plan and financial and operating strategies which were in place prior to the Acquisition.
Baker McKenzie lead partner Richard Lustig said: "We are delighted to have assisted Lonsec in this defining transaction."
Completion of the transaction is expected in August 2024, subject to customary closing conditions and GDG shareholder approval.
The Baker McKenzie team was led by Richard Lustig with support from Jed Lehmann, Addison Naylor, Jamie Sung and Alan Darwin.