Financial services company HALO Technologies (ASX: HAL) is putting its IPO money to use with global expansion in 2023 via the acquisition of Resilient Fund Managers Limited, a London-based peer that will fast-track HALO’s entry into the market.
The acquisition will leverage Resiliant’s regulatory licences, aka the equivalent of an AFSL, in the UK and Europe to accelerate HALO’s investment product launches.
“This acquisition provides the Company with direct control of a well-established, licensed business and provides the perfect launchpad for HALO to expedite its international expansion and sell directly into the large and lucrative European market,” said HALO CEO, George Paxton.
“The management team remains focused on delivering strong growth through strategic acquisitions and opportunistic partnerships to further its growth both onshore and overseas, in line with its strategic growth plans.”
Leading the European expansion will be Karl Hughes who will transition from CEO of Resilient, bringing with him more than 35 years of stockbroking experience. His initial objectives will be to establish strategic partners in the region that can drive HALO’s existing products and services which include global equities research and trade execution software solutions.
To consummate the acquisition, HALO will pay a £100,000 (AUD $153k) upfront deposit with a further £400,000 (AUD $614k) to be deferred and non-refundable unless the acquisition contract is breached by the vendors.
A change of control notice is anticipated to be approved by the UK’s Financial Conduct Authority (FCA) within 6 months and is not expected to impact Resiliant’s daily operations in the meantime.
HALO will use this time to integrate its technology and some staff over to the London office, while retaining Resilient’s existing management team. No financial details on Resiliant’s funds under management, revenue or earnings were disclosed in the acquisition announcement.
For the Half Year ended 30 June 2022, HALO Technologies reported $4.6 million revenue which delivered $557k EBITDA. It was the first audited reports released by the Company since listing on the ASX in April 2022 when raising $36 million at an IPO Offer Price of $1.20 per share.
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