Hub24 Ltd (ASX: HUB) shares will be on watch this morning after the company updated the market late yesterday about its proposed takeover offer to Easton Investments Ltd (ASX: EAS). At Tuesday's market close, the Hub24 share price finished the day 2% lower at $26.32.

Hub24's tabled offer

The Hub24 share price could be on the move today after the company advised its takeover offer will expire soon. Hub24 updated the ASX about its intentions in the final hour of trade yesterday.

According to its release, Hub24 advised that it will not be extending its off-market takeover offer past 7:00 pm on 22 February 2021.

Last month, the company put forward its offer to Easton shareholders in a bid to acquire one out of every three ordinary shares. The cash consideration offered to Easton shareholders stood at $1.20 per Easton share.

Easton directors unanimously urged its shareholders to accept the takeover offer from Hub24, in the absence of a superior offer.

It's worth noting that Hub24 currently holds a 29.3% interest in Easton. Each of Easton's directors accepted the takeover offer, which represented 3,411,206 shares or 9.1% of all Easton shares.

Quick take on Hub24

Established in 2007, Hub24 is a fintech company that provides investment and superannuation portfolio administration services. The group's platform offers a range of investment management options, including transaction and reporting solutions. These allow advisors to efficiently manage their clients' wealth portfolios and provide value-added services. 

Hub24 share price snapshot

Over the last 12 months, the Hub24 share price has accelerated, delivering gains of more than 140%. During March 2020, Hub24 shares fell to a 52-week low of $5.98 before zooming higher. Just last week, the company's shares reached an all-time high of $27.80 and are now within striking distance of breaking that new record again.

Based on the current Hub24 share price, the company commands a market capitalisation of around $1.76 billion.

The post Why the Hub24 (ASX:HUB) share price will be on watch today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) presented a challenging market in October, with the index wiping much of its monthly gains in the latter half of the month. Quarterly reporting season allowed many ASX 200 tech shares to continue their share price momentum following strong updates.

Here are the 3 best-performing ASX 200 tech shares in October. 

1. Link Administration Holdings Ltd (ASX: LNK) 

The Link share price increased 27% in October, driven by the non-binding indicative proposal the company received from Pacific Equity Partners. The offer would acquire 100% of the shares in Link Group at an indicative cash price of $5.20 per share. 

The current view from Link is that the proposal materially undermines the company and is not in the best interests of the shareholders. The company views itself as possessing leading positions in the markets in which it operates in, making early progress in its transformation plan and an expected recovery in market-driven revenue as economic activity improves. While no hard decision has been made, there is no certainty that such a proposal will eventuate. 

2. Dicker Data Ltd (ASX: DDR) 

The Dicker Data share price soared 23% following a strong quarterly update for the quarter ended 30 September. The update outlined a 14.9% increase in total revenue, year-to-date (YTD), to $1,481.5 million and a 28.3% increase in net profit before tax YTD to $60.8 million. The company highlighted it had been experiencing over and above forecasted revenue growth rates in the first half of the year, off the back of a significant mobilisation to remote working solutions. It sees growth stabilising for the second half of the year to expected levels. 

Looking ahead, the greatest opportunity for Dicker Data over the next quarter is supporting businesses with their return-to-work strategies and business continuity plans in a post-COVID-19 environment. It also commented it has experienced increased quoting activity and the resumption of larger infrastructure projects that were previously put on hold. 

The company also points to the rollout of 5G connectivity as a "tremendous opportunity" with all its hardware and software vendors. Furthermore, the company also intends to develop and invest in a new distribution centre at Captain Cook Drive, Kurnell NSW. The new distribution centre represents an increase in capacity of almost 80%. The large-scale expansion will pave the way for substantial inventory growth and technology portfolio diversification to meet the emerging needs of the Australian market. 

3. Hub24 Ltd (ASX: HUB) 

The Hub24 share price has been relentless, with a 250% run since its March lows and a 28% increase in October. From a fundamental perspective, the company continues to go from strength to strength, with a strong quarterly update and strategic acquisitions announced in October. 

The company posted a record September quarter, with $19 billion funds under administration (FUA), up 32% on the prior corresponding period. The company experienced strong inflows driven by new and existing licensee channels across self-licensed and boutique advisers, brokers and large national accounts. Even with its significant FUA, HUB24 only has a 2.1% market share in the investment and superannuation administration sector, so still has much room to grow.

On 28 October, the company announced three strategic transactions and a $60 million capital raising. These transactions included: 

• The proposed acquisition of investment platform provider Xplore Wealth Ltd (ASX: XPL) for $60 million
• The acquisition of Ord Minnett's non-custody Portfolio Administration and Reporting Service for $10.5 million upfront cash consideration 
• Proposed subscription for new shares in Easton Investment Ltd (ASX: EAS) of $14 million which will result in a shareholding of up to 40% of Easton. 

The post These were the 3 best-performing ASX 200 tech shares in October appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) dropped 1.6% to 5,960 points. The ASX selloff followed on from overseas market declines seemingly because of COVID-19 declines.

Here are some of the highlights from the ASX today:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The big four ASX bank announced its FY20 result today. There were some pretty big profit declines.

ANZ's statutory net profit after tax (NPAT) fell by 40% to $3.56 billion and continuing operations cash profit dropped by 42% to $3.76 billion.

The bank said that the profit decline was primarily driven by full year credit impairment charges of $2.74 billion, which increased because of the impact of COVID-19 and the first impairment of its Asian associates to the tune of $815 million, also due to the pandemic.

ANZ declared a final dividend of $0.35 per share, bringing the full year dividend to $0.60 per share. That amounts to a cut of 62.5% compared to FY19.

The ASX 200 bank's CET1 capital ratio was almost the same as last year, ending at 11.3% – still unquestionably strong using APRA's standards.

ANZ CEO Shayne Elliot said: "We could never have forecast 2020, a year that started with devastating bushfires in Australia and unwound with the waves of a pandemic that continues today. While we still cannot predict its course, we remain confident that we can deal with its impacts.

"While our immediate focus has been on assisting customers, we have also taken steps to protect the steps of our shareholders by maintaining our strong capital position, tightly managing costs and bolstering credit reserves, while still managing to pay a prudent dividend without diluting their holdings."

The ANZ share price fell by 2.4% today.

Hub24 Ltd (ASX: HUB)

Hub was in the spotlight today after coming back to trade from its capital raising and acquisition news.

It is raising around $60 million to fund three acquisitions. It's going to acquire investment platform provider Xplore Wealth Ltd (ASX: XPL) for $60 million through a combination of cash and new shares.

Hub24 is going to acquire Ord Minnett's non-custody portfolio administration and reporting service for a $10.5 million upfront consideration.

It's also going to invest in some Easton Investments Ltd (ASX: EAS) shares which will result in Hub24 owning 40% of Easton.

The total investment is $93 million and it's expected to add 13% to Hub24's earnings per share (EPS) in FY22.

The Hub24 share price went up more than 8% today. 

REA Group Limited (ASX: REA)

REA Group has also announced an acquisition today. The real estate tech share is going to take a controlling stake in India's Elara Technologies. Its shareholding will be between 47.2% to 61.1%.

The total consideration will cost between US$50 million to US$70 million for the ASX 200 share.

Elara is India's fastest growing digital real estate businesses in terms of audience with brands like housing.com, PropTiger.com and Makaan.com. Whilst Indian listings have been impacted due to COVID-19, Elara has continued to grow its market share.

REA Group CEO Owen Wilson said: "India is an incredibly attractive market and one that provides excellent long-term growth opportunities, while complementing REA's footprint in Asia and North America. The country is forecast to deliver strong growth over the next decade and continues to experience rapid digital transformation."

Elara provides a wide range of services including digital advertising and transactions including personalised search, virtual viewing, site visits, home loans and post-sales services.

The REA Group share price fell by 1.2% today.

JB Hi-Fi Limited (ASX: JBH)

The electronics ASX 200 retailer announced its FY21 first quarter trading update today.

JB Hi-Fi said that its total sales growth was 27.3% with comparable sales growth of 27.6%. JB Hi-Fi New Zealand delivered a total sales decline of 2.5%, with a total comparable sales decline of 2.5% as well. The Good Guys managed to grow total sales by 30.9%, with comparable sales growing by the same amount.

The company said that all of its stores located in metropolitan Melbourne opened yesterday.

The JB Hi-Fi share price dropped backwards by 6.2% today.

The post ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result appeared first on The Motley Fool Australia.

It's a bleak day for the ASX. But that didn't stop the Xplore Wealth Ltd (ASX: XPL) share price from surging to a two-year high due to a takeover.

The Xplore share price surged 188% to 19 cents during lunch time trade even as the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) tanked by around 1.5% each.

There aren't many stocks trading in the black today due to a large sell-off on Wall Street overnight. But the wealth platform company is bolstered by merger and acquisition (M&A) action.

M&A fever fires up the Xplore share price

It's larger rival Hub24 Ltd (ASX: HUB) will acquire the company via a scheme implementation agreement.

The bidder completed its $50 million placement today to help fund the takeover. It's looking to raise up to an extra $10 million via a share purchase plan.

Hub24 is going for a hat trick. It will use the proceeds from the new share price to make two other investments. The first is the acquisition of Ord Minnett's portfolio administration and reporting services (PARS) asset.

Multiple transactions shake-up wealth industry

Hub24 will also acquire a 40% interest in Easton Investments Ltd (ASX: EAS). As part of this investment, Easton will purchase Hub24's Paragem business, reported Money Management.

The transaction will give Easton 670 advisors from Paragem. This will make Easton the fifth largest dealer services group in Australia.

Meanwhile, the three strategic transactions will strengthen Hub24's position as the leading provider of integrated platforms, data and technology services for financial advisers, stockbrokers and private banks.

Hub24 joins Xplore's share price parade

The market seems to like what the bidder is saying. The Hub24 share price surged 8% to a record high of $22.64 at the time of writing.

"The successful completion of these transactions, which include the acquisition of Xplore Wealth and Ord Minnett's PARS, will result in a 47% increase in custodial FUA, around 400 new adviser relationships and the expansion of non-custody administration FUA [funds under advice] to $14 billion," said Hub24's chief executive Andrew Alcock.

"For a total consideration of $93m, including integration and transaction costs, these compelling transactions are expected to return approximately 13% improvement in EPS to shareholders in FY22."

Outlook for M&A in 2021

We haven't seen many M&A's this year as the COVID‐19 pandemic may have scuttled plans. Having said that, the proposed takeover of Coca-Cola Amatil Ltd (ASX: CCL) will put M&A back on the agenda for 2021.

This means we will probably see a pick up in the number of takeovers. The fallout from COVID-19 presents opportunities for those lucky enough to be cashed up.

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The HUB24 Ltd (ASX: HUB) share price has returned from its trading halt and is defying the market selloff on Thursday.

At the time of writing, the investment platform provider's shares are up 4% to $21.79.

Why was the HUB24 share price in a trading halt?

HUB24 requested a trading halt on Wednesday whilst it launched a $60 million equity raising to fund three strategic transactions.

These transactions comprise the acquisition of investment platform provider Xplore Wealth Ltd (ASX: XPL), the acquisition of Ord Minnett's non-custody Portfolio Administration and Reporting Service (PARS), and an increased investment in integrated accounting and wealth solutions provider Easton Investments Ltd (ASX: EAS).

Management believes these transactions will strengthen its position as the leading provider of integrated platforms, data, and technology services for financial advisers, stockbrokers, private banks, licensees, accountants and their clients.

This morning the company took a step closer to completing these deals after announcing the successful completion of the institutional component of its equity raising.

According to the release, HUB24 has raised $50 million via a fully underwritten placement of 2.5 million new shares to institutional and sophisticated investors at a price of $20 per new share. This represents a 4.6% discount to its last close price.

Management advised that the placement attracted strong demand from existing HUB24 shareholders, as well as new investors.

What now?

HUB24 will now push ahead with its share purchase plan, which is aiming to raise a further $10 million from retail investors.

Eligible HUB24 shareholders will have the opportunity to apply for up to $30,000 worth of new shares. This is free of any brokerage, commission, or transaction costs, and at the same price as the institutional placement.

Why is HUB24 making these transactions?

Management notes that the transactions will increase the funds under administration (FUA) across the combined company to $42 billion ($28 billion in custody and $14 billion in non-custody).

It will also introduce additional capability to HUB24's market leading platform and allow the company to benefit from the addition of new relationships. This includes two significant new clients who have indicated that these strategic transactions represent a positive outcome for their advisers and their clients.

In respect to earnings, HUB24 expects the transactions to deliver approximately 13% earnings per share accretion in FY 2022.

The post Why the HUB24 (ASX:HUB) share price is storming higher despite the market selloff appeared first on The Motley Fool Australia.

The HUB24 Ltd (ASX: HUB) share price won't be going anywhere today after the investment platform provider requested a trading halt prior to the market open.

Why is the HUB24 share price in a trading halt?

HUB24 requested a trading halt this morning so that it could launch a $60 million equity raising to fund three strategic transactions.

According to the release, the company is aiming to raise these funds via a fully underwritten institutional placement to raise $50 million and a $10 million non-underwritten share purchase pan.

These funds will be raised at a fixed price of $20.00 per new share, which represents a 4.6% discount to HUB24's last close price of $20.97.

What is HUB24 acquiring?

HUB24 is using these funds for three strategic transactions which it believes will strengthen its position as the leading provider of integrated platforms, data, and technology services for financial advisers, stockbrokers, private banks, licensees, accountants and their clients.

These transactions comprise the acquisition of investment platform provider Xplore Wealth Ltd (ASX: XPL), the acquisition of Ord Minnett's non-custody Portfolio Administration and Reporting Service (PARS), and an increased investment in integrated accounting and wealth solutions provider Easton Investments Ltd (ASX: EAS).

What are the details?

HUB24 has agreed to pay $60 million in cash and scrip to acquire Xplore. This equates to a price of 20 cents per share, which is a massive 203% premium to its last close price.

The release explains that the company has agreed to pay $10.5 million in cash for Ord Minnet's PARS business.

And finally, HUB24 has agreed a cash consideration of $14 million and the divestment of its Paragem business to Easton Investments. This will result in the company's shareholding increasing to up to 40% in the company. The new Easton Investments shares will be issued at a share price of $1.20, which represents a 38% premium to its last close price.

The total investment for these transactions is approximately $93 million. HUB24 expects them to deliver approximately 13% earnings per share accretion in FY 2022.

In addition, management notes that transactions will increase the funds under administration (FUA) across the combined company to $42 billion ($28 billion in custody and $14 billion in non-custody). It will also introduce additional capability to HUB24's market leading platform.

Management also believes that HUB24 will benefit from the addition of new relationships, including two significant new clients who have indicated that these strategic transactions represent a positive outcome for their advisers and their clients.

The post Why the HUB24 (ASX:HUB) share price is in a trading halt appeared first on The Motley Fool Australia.

Much of the hype in the media has been about fintech stocks, but not all finance companies with good future prospects have to be technology companies as well. Here are five finance companies that could boost the returns in your portfolio, simply because they are growing actively. Take a closer look before the rest of the market discovers them.

Emerchants Ltd (ASX: EML) has a market cap of $394m and is the biggest of the companies here. Emerchants provides electronic payments solutions for prepaid card products and services, issuing and processing debit cards as well as others like store gift cards. Growth in sales is expected to soar as corporate bookmakers' customers make more use of winnings cards. The company has also expanded into the UK and just this week into the US with its virtual payments platform.

Consolidated Operations Group Ltd (ASX: COG) has a market cap of $157m but is virtually unheard of. Formerly known as Armidale Investment Corporation, Cons Operations is the holding company for several diversified companies offering business finance for several different purposes including asset and equipment finance, insurance and mortgage solutions and leasing and commercial asset rental. Several recent acquisitions should add materially to revenue growth, with earnings per share expected to follow.

Pioneer Credit Ltd (ASX: PNC), with a market cap of $152m, is a debt collector, specialising in unsecured retail debt portfolios. Pioneer also offers customers loans so they can consolidate debts and refinance existing loans. The company recently announced that it expected to see a net profit for the 2018 financial year (FY2018) to rise by more than 49% over the FY2017 profit. At the current share price of $2.54, shares are trading at an undemanding P/E of 15x for FY2017.

Axsesstoday Ltd (ASX: AXL) has a market cap of $72m. The company provides financing to businesses for new or used commercial equipment such as display fridges, pizza ovens, forklifts and other yellow goods. The list even extends to computers, printers and copiers as well as workstations and furniture. In some respects, Axsesstoday resembles Silver Chef Limited (ASX: SIV) and probably competes with Silver Chef in some industries. The company has reported strong market share growth translating into earnings, with a 157% growth in net profit after tax for FY2017 compared to FY2016, and flagged a 67% increase in net profit in FY2018.

Easton Investments Ltd (ASX: EAS), with a market cap of $37m, is the baby of the bunch. The company provides traditional accounting and asset & wealth management services. The first half of FY2017 wasn't one to write home about but was impacted by a one off extraordinary item. The good news is that the company continues to grow its funds under advice, as well as the number of SMSFs that are under the company's administration. Additionally, the majority of Easton's businesses generate higher earnings in the second-half of the year so that we can put the first half behind us.

The post 5 overlooked finance shares to add to your watchlist appeared first on The Motley Fool Australia.