Apex Group, a global financial services provider, has been confirmed as providing a superior proposal for the acquisition of Mainstream Group.
On 30 April, the board of Mainstream determined Apex’s offer of AUD $2.55 cash per share by way of a scheme of arrangement to be a superior proposal.
Mainstream, which currently serves more than 176,000 investors and greater than 1,300 funds with funds under administration in excess of AUD $272 billion, has notified SS&C, and gave them until 6 May to match, or offer more favourable terms, as detailed in the scheme implementation deed with SS&C.
Apex’s proposed acquisition of Mainstream would provide clients with access to the group’s international presence including the potential to access new markets through its globally connected operating model across 45 offices, supported by 4,000 employees.
In addition, Mainstream says clients would benefit from Apex’s product breadth, including fund administration and related solutions, European custody and banking services, and a pioneering ESG Rating & Advisory offering.
This acquisition would also complement Apex’s existing presence in Australia, where it has operated for over a decade, with offices in both Melbourne and Sydney, with over 60 employees.
Peter Hughes, founder and CEO of Apex Group, comments: “We have long been impressed by the Mainstream business and management team, and strongly believe that Apex would offer a highly attractive platform to support the company through its next stage of growth.”
Hughes continues: “Mainstream would be a highly strategic and complementary addition to the Apex Group, which has developed into a unique and differentiated provider, delivering an unrivalled breadth and depth of services to our clients.”
“At Apex, we are committed to continually enhancing our single-source model, and this acquisition would expand our ability to support new and existing clients across all aspects of their business — no matter where they are in the world,” adds Hughes.
Apex is being advised by Macquarie Capital as financial adviser and Herbert Smith Freehills as legal adviser.
