The Smart Parking Ltd (ASX: SPZ) share price has soared higher today following the release of its Q1 trading update.

In late-morning trade, shares in the parking technology company have risen 9% to 12 cents. This compares to the All Ordinaries Index (ASX: XAO) which is up 0.1% to 6,252 points.

Business update

For the period ending 30 September, Smart Parking recorded a strong growth despite COVID-19 severely impacting the business in Q1.

Car volumes continued to recover, jumping 152%, and parking breach notices (PBN) issuances surged 388% since coronavirus lows in April. The result led Smart Parking to record a positive operating cash flow of $0.6 million.

The UK sales team restructure delivered 56 new site installations, meeting business performance expectations. KFC UK & Ireland installations have started with 15 sites outfitted, and 2 in New Zealand.

Smart Parking advised of technology project delays across all territories due to COVID-19. Gatwick Airport in the UK has been sent equipment, but installation has been deferred until H2 FY21. A recent Queen Victoria Market contract in Victoria will look to fit out guidance systems across 500 parking bays in the next quarter.

Total order book and work in progress remains firm at $3.2 million. The company noted an annualised personal savings of $1.2 million from a reduction in head count.

Smart Parking closed the quarter with a cash balance of $9.3 million, including a draw down loan of $2.7 million.

Outlook

As Q2 is under way, the company is seeking further growth opportunities while the market recovers to pre-COVID levels.

In the pipeline is 40 new automatic number plate recognition (ANPR) installations for the current quarter. Smart Parking is focused on achieving 1,000 ANPR installations by June 2023.

Internet of things (IoT) product launches are progressing, as the company seeks new customers, pushing for greater revenue prospects.

About the Smart Parking share price

The Smart Parking share price has failed to climb back since COVID-19 hit the market. Shares in the tech company reached a low of 7 cents in March, after trading around 24 cents the month before.

With a market capitalisation of $43 million, investors will be watching to see if Smart Parking can regain its former glory.

More reading

• Why the IOUpay (ASX:IOU) share price jumped 14% this morning
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• Why the Emerge Gaming Ltd (ASX:EM1) share price jumped 12% today
• Cloud computing and gaming boost Microsoft (NASDAQ:MSFT) earnings results
• Why Bendigo and Adelaide Bank, Mach7, National Storage, & Unibail-Rodamco-Westfield are dropping lower

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Smart Parking Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has fought back from early weakness and fighting to get into positive territory. The benchmark index is currently roughly flat at 6,048.1 points.

Here’s what is happening on the market today:

Afterpay impresses.

The Afterpay Ltd (ASX: APT) share price is surging higher today after the release of its first quarter update. The payments company’s update revealed that its strong growth has continued in FY 2021. For the three months ended 30 September, Afterpay reported a 115% increase in underlying sales to a record of $4.1 billion. This was driven by increased usage and further strong customer growth. Afterpay ended the period with 11.2 million active customers. This was a 98% increase on the prior corresponding period.

Coles beats expectations.

The Coles Group Ltd (ASX: COL) share price is pushing higher today after the release of a stronger than expected first quarter update. For the three months ended 30 September, Coles delivered a 10.5% increase in total sales revenue over the prior corresponding period to $9.6 billion. As a comparison, analysts at Goldman Sachs were forecasting total first quarter sales of $9,365 million, up 7.7% on the prior corresponding period. All three of Coles’ segments performed positively and delivered strong same store sales growth.

HUB24 equity raising.

The HUB24 Ltd (ASX: HUB) share price is in a trading halt today after launching an equity raising this morning. The investment platform provider is aiming to raise $60 million to fund three strategic transactions. This includes the acquisition of investment platform provider Xplore Wealth Ltd (ASX: XPL). The total investment for the transactions is approximately $93 million, with HUB24 expecting them to deliver approximately 13% earnings per share accretion in FY 2022.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the Blackmores Limited (ASX: BKL) share price with a 10% gain. This morning Credit Suisse upgraded its shares to a neutral rating from underperform following its AGM update. The worst performer has been the Unibail-Rodamco-Westfield CDI (ASX: URW) share price with a 4% decline. This morning the shopping centre operator revealed that leading independent proxy advisory firm, Glass Lewis, has recommended that shareholders vote in favour of its 3.5 billion euros capital increase.

More reading

• Why Bendigo and Adelaide Bank, Mach7, National Storage, & Unibail-Rodamco-Westfield are dropping lower
• Why Resmed, Coles, Afterpay and one other have made early share price gains
• Why the HUB24 (ASX:HUB) share price is in a trading halt
• Coles (ASX:COL) share price on watch after beating Q1 expectations
• How ASX shares like Afterpay (ASX:APT) push for explosive growth

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Small cap ASX shares in the e-sports sector have made significant progress in the development of respective e-sports media, software and tournament products. This has seen the likes of Emerge Gaming Ltd (ASX: EM1) and Esports Mogul Ltd (ASX: ESH) deliver triple digit returns in recent months.

Today, the company announced a significant milestone for pre-registrations for its MIGGSTER platform. The Emerge Gaming share price rocketed up 12.5% to 16 cents in early trade and has since retreated to 12 cents, up 4.17% at the time of writing.

A new mobile gaming platform

MIGGSTER Mobile is a mobile casual e-sports platform that uses Emerge’s proprietary e-sports tournament platform technology. The platform will offer avid mobile gamers the opportunity to turn hours of entertaining mobile gaming into prizes and rewards. All while competing against the community and sharing their success with gaming friends. 

The revenue proposition for MIGGSTER Mobile is that it will be offered as a subscription service,with users paying US$8.50 per month. From a consumer perspective, subscribers can enter into tournaments involving their favourite mobile social games, using their leisure time to earn rewards, win prizes and participate in a minimum aggregate prize pool of US$500,000. 

The planned launch will invite subscribers to sign up to the MIGGSTER Mobile platform on tiered subscription packages. These include bi-annual packages of US$51.00 and discounted annual packages. 

Why the Emerge Gaming share price is up today

The company recorded 3 million user pre-registrations on 19 October 2020. Today, the company added a further 3 million user pre-registrations. The strong user interest and continuing strong momentum is likely to be the catalyst for the Emerge Gaming share price jump today.

MIGGSTER is currently promoted to a network of more than 14 million affiliate members across 150 countries. Its promotion is creating much needed awareness and interest for a highly anticipated MIGGSTER Mobile product launch in November 2020. 

More reading

• Douugh and Ioupay were among the most traded shares on the ASX last week
• Emerge Gaming (ASX:EM1) share price sees explosive growth
• The Esports Mogul (ASX:ESH) share price has surged up 57%. Here’s why

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Microsoft Corporation (NASDAQ: MSFT) reported the results of its fiscal first quarter (ended Sept. 30), which trounced expectations on the strength of the company’s cloud services and continuing swell in gaming activity. Revenue of $37.2 billion grew 12% year over year, easily surpassing analysts’ consensus estimates of $35.72 billion, while also surpassing the high end of management’s forecast, which topped out at $36.05 billion. Earnings per share (EPS) of $1.82 increased 32%, eclipsing the $1.54 expected by analysts.

Management cited strong demand for Microsoft’s cloud computing services, with CFO Amy Hood noting, “We continue to invest against the significant opportunity ahead of us to drive long-term growth.”

Azure Cloud continued to grow like gangbusters, up 48% year over year, ticking up slightly from 47% growth in Q4. This pushed the intelligent cloud segment higher, up 20% year over year. Within the segment, commercial cloud produced revenue of $15.2 billion, up 31% year over year, achieving a run rate of more than $60 billion, while generating gross margins of 71%.

The more personal computing segment got a boost, climbing 6%. Gaming continued its outsized growth, growing 22% year over year, providing fuel for the segment. Xbox content and services increased 30%, driven higher by strong third-party titles and subscriptions to Xbox Game Pass, as well as demand from Microsoft’s own titles. Surface also held up its end, with revenue that increased 37%.

The productivity and business processes segment did its part with strength across its portfolio, up 11% year over year, as Office commercial products grew 9% driven by Office 365 commercial, which jumped 21%.

Microsoft could get another boost from gaming in the current quarter, as the company is releasing the next generation Xbox console next month, just in time for the holidays. In September, Microsoft revealed that for those not able to spend $499 on a new device, the company would begin offering consoles included in a monthly subscription.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena owns shares of Microsoft. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but is falling just short. At the time of writing, the benchmark index is down slightly to 6,046.4 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is down 2% to $6.68. This appears to have been driven by a broker note out of Morgan Stanley this morning. Its analysts have retained their underweight rating and $6.10 price target on the regional bank’s shares following its first quarter update.

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 Technologies share price is down almost 6% to 88.5 cents following the release of its first quarter update. During the quarter, Mach7 generated $3.3 million (total contract value) of new sales orders and recorded a $0.9 million increase in recurring revenue. Some investors appear to have been expecting stronger growth from the healthcare technology company.

National Storage REIT (ASX: NSR)

The National Storage share price is down 1% to $1.82. This is despite the self-storage operator releasing a positive update at its annual general meeting this morning. National Storage revealed that in excess of 60,000 square metres of occupancy has been added since 1 July. This is the equivalent of 12 full centres. Management has reaffirmed its guidance for FY 2021.

Unibail-Rodamco-Westfield CDI (ASX: URW)

The Unibail-Rodamco-Westfield share price has fallen 4.5% to $2.87. This morning the shopping centre operator revealed that leading independent proxy advisory firm, Glass Lewis, has recommended that shareholders vote in favour of its 3.5 billion euros capital increase. Some major shareholders have objected to the plan, which will be voted on at the company’s extraordinary general meeting in November. It is an essential element of the company’s RESET plan.

More reading

• National Storage (ASX:NSR) share price lower following AGM update
• The ASX 200 sank almost 2% today
• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks
• Bendigo and Adelaide Bank (ASX:BEN) share price higher following Q1 update
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share prices of a number of ASX companies have reversed yesterdays losses and made rapid share price gains in morning trade today. Here are four of the leading large caps and some reasons why they have made such a healthy turnaround. 

Afterpay Ltd (ASX: APT)

Afterpay has published very strong first quarter growth figures in its Q1 update today. The company reported a 115% increase in underlying sales to a record of $4.1 billion in Q1. In summary, the US recorded a 229% increase in sales with a 346% step change in UK and a 63% lift in Australia. Moreover, the company’s active user base has grown to 11 million globally.

The company said like-for-like sales growth was driven by Millennials, which accounted for 45 per cent of the increase. Afterpay also noted that defaults were “below historical rates” in all regions. The Afterpay share price has surged 5.26% up at the time of writing.

Resmed CDI (ASX: RMD)

Resmed has also seen its share price reverse yesterday’s trend, rising by 4.3% at the time of writing. Morgan Stanley raised its Resmed share price target this week. Moving it from $25.40 to $25.90 due to its belief in strong growth despite the pandemic. The company is due to deliver its Q1 results tomorrow which are expected to continue the performance of its FY20 annual report. 

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Fisher & Paykel has seen its share price jump up by 4.5% in early trading underlining its status as a ‘go to’ healthcare share for many investors. The company booked a record FY20 profit after sales of respiratory and home care products helped lift the company’s full-year profit 10 per cent. At this time, the company stated that an estimated three million patients were treated with its Optiflow respiratory products during the year.

Coles Group Ltd (ASX: COL)

Supermarket large cap Coles has reported Q1 results above expectations. Same-store supermarket sales rose 9.7 per cent in the September quarter. This was due to a popular Little House collectibles promotion, and strong online and in-store Victorian demand. This is the company’s second-highest quarterly comparable stores sales growth since it was taken over by Wesfarmers Ltd (ASX: WES).

As many still live with some restrictions, there were strong sales of baking mixes, herbs and spices, and cleaning goods.

More reading

• Coles (ASX:COL) share price on watch after beating Q1 expectations
• How ASX shares like Afterpay (ASX:APT) push for explosive growth
• Afterpay (ASX:APT) share price on watch after stellar Q1 growth
• 5 things to watch on the ASX 200 on Wednesday
• The ASX 200 sank almost 2% today

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The National Storage REIT (ASX: NSR) share price is dropping lower on Wednesday despite the release of an upbeat annual general meeting presentation.

In morning trade the self-storage operator’s shares are down 1% to $1.82.

What was in its annual general meeting update?

Along with the summary of its performance in FY 2020, management provided investors with an update on how it was performing in the new financial year.

According to the release, National Storage has started FY 2021 in a positive fashion, with its combined occupancy up 5.6% year to date to 84.5%.

Management notes that in excess of 60,000 square metres of occupancy has been added since 1 July, which is the equivalent of 12 full centres.

Also increasing in FY 2021 has been its revenue per available square metre (REVPAM) metric. At the end of the first quarter, it stood at $200. This is up from $195 at 30 June.

In respect to occupancy levels, management notes that almost half (48%) of its centres are now operating with occupancy levels above 85%. Approximately 23% are above 90% occupancy.

Another positive is that the pandemic hasn’t stopped the company from pursuing its growth through acquisitions strategy. It completed eight acquisitions totalling $139 million, adding 54,100 square metres of net lettable area. Pleasingly, its forward-looking acquisition pipeline remains strong.

In addition to this, there are four expansion projects that are nearing completion and its development pipeline remains strong with seven projects expected to be completed during FY 2021.

Outlook.

National Storage is one of only a handful of companies that are confident enough to provide guidance for the full year. Though, admittedly, it has provided a reasonably broad guidance range.

Management revealed that it expects to report underlying earnings of $78 million to $84 million and underlying earnings per share of 7.7 cents to 8.3 cents per security.

This compares to underlying earnings of $67.7 million and earnings per share of 8.3 cents in FY 2020.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The deadline is fast approaching for Link Administration Holdings Ltd (ASX: LNK) to accept or reject a buyout proposal from a consortium of private equity (PE) firms.

Heavyweight PE firms, Pacific Equity Partners (PEP) and Carlyle Group, have given Link until 5pm today, Wednesday 28 October, to access its books and start the due diligence process. The proposed buyout offer currently stands at $5.40 per share.

What does Link Administration do?

Link Administration is a technology provider of outsourced administration services for superannuation fund administration, mortgages, corporate markets and related services. 

Its most valuable asset is PEXA, an electronic conveyancing company of which it owns 44%. PEXA handles almost all transfers and discharging of mortgages across all Australian states. Commonwealth Bank of Australia (ASX: CBA) for example, settles 80% of its mortgages through PEXA.  

What is the background behind the buyout?

PEP is in fact the same company that took Link Administration to float in 2015 after working with it for 10 years. The initial listing price at the time was $6.37. A few years later, PEP sold its shares in Link for $8.38 each and made a substantial profit in the process.

That was in 2018 and, since then, the Link Administration share price has been in a downward spiral with the company now trading at $4.78 (at the time of writing). The company was in the middle of restructuring to cut costs when the the buyout offer came from PEP and Carlyle. 

The initial buyout offer came at $5.20 which was dismissed by Link Administration’s management. Link’s major institutional shareholders, however, had differing opinions, with Perpetual Limited (ASX: PPT), its bigger shareholder, agreeing to accept the offer at that price.

Link’s second largest shareholder, Yarra Capital Management, disagreed and argued that the $5.20 price tag was too low given that the PEXA business has enormous upside potential. 

The latest proposal

PEP and Carlyle eventually came up with a sweeter deal at $5.40. This new proposal also includes an option to buy Link Administration at $3.80 excluding the PEXA asset, but instead with the ability to take an indirect interest in it. It is clear that the valuation of PEXA has really been at the heart of this takeover battle.

Link Administration CEO, Michael Carapiet, told shareholders at Link’s virtual annual meeting yesterday that the proposal ”remains non-binding, indicative and continues to have a number of conditions attached”. He instructed the shareholders “to do nothing”.

At this stage, however, it looks like there is enough support from shareholders to go ahead with the buyout proposal. We will know for sure today.

More reading

• ASX 200 up 0.3%: Coca-Cola Amatil rockets on takeover approach, Westpac’s $1.2bn earnings hit
• Why Coca-Cola Amatil, CSR, Link, & Qantas shares are storming higher
• 5 major ASX 200 events this week
• Why Iluka, Link, Resolute, & Temple & Webster shares are tumbling lower today
• Link (ASX:LNK) share price drops lower following takeover update

dsunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Openpay Group Ltd (ASX: OPY) has achieved record growth in the first quarter of FY21, potentially opening the way for the Openpay share price to reverse the losses over the past month. This includes increases in active customers by 145% and active merchants by 35% against the previous corresponding period (pcp). The company is building on past innovative approaches to grow its user base. 

The company’s share price has edged down slightly at the open of today’s trading, after falling by 3.12% over the past month. 

Why is this positive for the Openpay share price?

Financial metrics

Aside from the growth in active users and merchants, the buy now, pay later (BNPL) company also saw growth across a range of additional key metrics. For example, the company has also achieved a 235% pcp increase in the number of active plans. Further increased repeat usage of Openpay plans was recorded with 78% of new plans generated by repeat customers and 46% of customers with multiple active plans.

The UK business growth has sped up substantially. Active plans grew by 56% versus the previous quarter. Currently representing almost 28% of all active plans. It also contributed 82% of all new active customers. All of these metrics are likely to positively pressure the Openpay share price. 

Merchant wins

The quarter saw Openpay entrench itself considerably within healthcare, automotive dealers and sports. Openpay’s growth strategy into sports membership has been further cemented with a partnership with Stack Sports globally. In addition to significant merchant wins in Australia with major retailers Kogan.com Ltd (ASX: KGN), Dick Smith and Matt Blatt.

Other merchant wins have included automotive sector operators like Janrule Group, Goodyear Autocare and Australia’s largest Mazda dealership group; Grand Prix Group.

In Healthcare: Class1 Orthodontics, L&F EyeCare, Blue Mountains Animal Health, Melbourne Dental Suite, Smile Bright White, Bendigo Pets Vet and Richard Lindsay & Associates. Moreover, a referral partnership will see Respiri Ltd (ASX: RSH) promoting Openpay to its network of pharmacies Australia wide.

In the UK, Openpay exclusively trades in the online retail vertical. Consequently, this quarter included new launches included Watch Nation, Tessuti, Size, Shopto and Fulham Football Club, the latter via a partnership with Retail & Sports Systems. Post quarter end, a further English Premier League football club, Wolverhampton Wanderers FC launched with Openpay to enable merchandise purchases through its online store, as did Squizzas and luxury brand, The Rug Company.

The combination of innovative targeting, along with success in customer acquisition is also likely to bode well for the Openpay share price. 

Management commentary

Openpay CEO Michael Eidel said:

Openpay made strong progress in the September quarter, delivering across all core strategic pillars. We celebrated a major milestone, passing 1 million active plans and transaction volumes grew at historic levels as B2C plan usage continued to increase.

These achievements were recorded despite continued volatility at the macro level and the lockdown in Victoria, reinforcing the role for Openpay plans as a smart budgeting tool for consumers.

More reading

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Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

More reading

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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