In a statement released to the ASX on Thursday, Praemium said it had entered into a bid implementation agreement to make an off-market conditional takeover bid for all of the shares of Powerwrap that it did not already own.
The company said the shares would be acquired for $55.6 million, and would create a merged group with over $27 billion in funds under administration (FUA).
“The Powerwrap board of directors unanimously recommended that Powerwrap shareholders accept the offer and have indicated that they will accept the offer... in the absence of a superior proposal,” Praemium said.
“Powerwrap [shareholders] will have the opportunity to participate in the benefits of a merged group which will be one of Australia’s largest independent specialist platform providers on a combined FUA basis.”
Praemium chairman Barry Lewin said the deal represented an exciting opportunity.
“For many years, Praemium has been on a growth trajectory with a recent history of generating steadily growing profitability. This merger adds increased scale and significant synergies,” Mr Lewin said.