HALO Technologies will springboard its entry into the United Kingdom financial services market, after agreeing to a strategic acquisition for a licensed UK entity.

HALO Technologies (ASX:HAL) has announced plans to acquire Resilient Fund Managers Ltd, a London-based company authorised to offer financial services in the UK.

The deal will allow HALO to enter the UK market – offering its unique online global equities research and trade execution software services there, by leveraging Resilient’s established regulatory structure.

It also opens the window for HALO to operate future acquired financial service firms and formalise strategic distribution partner agreements in Europe.

That’s a major piece of the HALO puzzle, in line with the international growth strategy outlined in the company’s prospectus and fully funded by capital from its IPO.

“This acquisition provides the company with direct control of licensed business and provides the perfect launchpad for HALO to expedite its international expansion and sell directly into the large and lucrative European market,” HALO CEO George Paxton said.

“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.”

Broader scope abroad

Acquiring Resilient’s Financial Conduct Authority (FCA) permits will allow HALO to carry out a series of services in the UK market. These include:

  • Holding and controlling client money.
  • Advising in investments, except on pension transfers and opt outs.
  • Arranging deals in investments with customers including eligible counterparties, professional and retail investors.
  • Arranging safeguarding and administration of assets.
  • Dealing in investments as the agent.
  • Managing investments.
  • Safeguarding and administration of assets (without arranging).
  • Agreeing to carry on a regulated activity.

HALO said in its release to the market that the deal represented a material milestone for the company.  Karl Hughes to be appointed CEO of Resilient and lead HALO’s European expansion.

Hughes brings more than 35 years of stockbroking experience, including 25 years in senor managerial roles, and will be responsible for establishing and growing the company’s operations in the region.

Transactional terms

HALO will acquire all shares in Resilient from current owner GHC Group in exchange for a non-refundable deposit of £100,000 up-front, with £400,000 more to be paid when the deal’s conditions are fully satisfied.

The deal is conditional on GHC complying with all its necessary obligations once completed, the approval of the FCA to a change in control of Resilient.

The deal will be automatically terminated if the conditions are not fulfilled by September 30 of this year.

 

This article was developed in collaboration with HALO Technologies, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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