Generation Development Group (GDG) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition creates the outright market leader in managed accounts by combining the top two players by funds under management, covering a full spectrum of solutions from ready-made to tailored portfolios at scale.

• The managed accounts sector is forecast to grow from AUD 206 billion in 2024 to AUD 474 billion by 2030, offering significant expansion opportunities.

• Evidentia brings a high-performing, experienced team with a strong track record, growing from zero to nearly AUD 13 billion FUM in under five years.

• The acquisition aligns with strategic objectives to drive both organic and inorganic growth, leveraging legislative and structural tailwinds in financial services.

• The deal was driven by long-term relationships and cultural alignment, not a competitive process.

Financial terms and conditions

• Upfront consideration of AUD 320 million, with an additional AUD 40 million earnout based on combined top-line revenue growth.

• Funded through an AUD 287.9 million equity raising and AUD 75.1 million in scrip, with Evidentia shareholders rolling into the group.

• Additional AUD 30 million raised for synergy realization and future growth initiatives.

• The deal is double-digit accretive on a standalone basis by FY26, excluding synergies.

Synergies and expected cost savings

• Revenue synergies are prioritized over cost synergies, with significant cross-sell and product expansion opportunities identified.

• Minimal overlap between the two businesses, especially in tailored portfolios, allowing for best practices to be shared.

• Working groups established to execute on synergy initiatives, with technology spend focused on revenue synergies.