MA Financial says acquisition of IP Generation is unusual move
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More news: MA Financial co-chief executive Julian Biggins told Capital Brief that the deal to buy IP Generation was a few years in the making, with both companies viewing it as a “sensible and strategic transaction to pursue”.
Biggins said it was an unusual transaction for MA Financial, which typically prefers to build businesses rather than acquire them.
What they said: “We tend not to like to buy things... We prefer to build things bottom up and create value but [IP] is incredibly complementary to what we do. The access to capital, what IP generation does and where it gets access to capital from, is totally different to where we get capital from — family offices and a couple of private wealth groups,” Biggins said.
“...It's always easy to say no and go on your merry way. But we kept coming back, both of us, to thinking, 'Yeah, this is really worth trying to nut out the transaction'.”
MA Financial shares fall after IP Generation acquisition announced
More news: Shares in asset manager MA Financial are down after briefly rising on news it will acquire real estate investment management firm IP Generation for $90.4 million.
The numbers: MA Financial’s share price was 3.68% lower at $6.45 at 1:15pm AEST, although it is still up by 41.25% over the last 12 months.
The takeover deal consists of an upfront consideration payment of $80 million in MA Financial shares followed by a deferred consideration payment of $10.4 million, evenly split in cash and MA Financial shares, to be made in 12 months.
MA Financial agrees $90m deal to acquire IP Generation
More news: Asset manager MA Financial has agreed to acquire real estate investment management firm IP Generation, days after confirming a deal was in the works.
The fixed consideration is valued at $90.4 million, which is equivalent to 7.9 times IP Generation’s normalised EBITDA for financial year 2024.
IP Generation manages approximately $2 billion of Australian shopping centre assets across 10 unlisted funds on behalf of around 1,100 high-net-worth investors. The deal will take MA Financial’s assets under management to more than $12 billion.
Senior IP Generation executives will stay with the company and take leadership roles in the combined real estate asset management team.
What they said: “We are delighted to welcome the IP Generation team to MA Financial. We have a long association with IP Generation and its senior leaders and believe that together we have a significantly strengthened real estate management capability,” MA Financial joint CEO Julian Briggs said.
“Combining IP Generation with MA Financial is a natural fit. We have known and worked with the MA team for many years and believe that we have a strong cultural alignment as well as a common founder philosophy,” IP Generation founder and CEO Chris Lock said.
MA Financial in trading halt ahead of 'significant transaction' news
More news: MA Financial has announced that it is now in a trading halt until it makes an announcement regarding a “potential significant transaction”.
The trading halt is expected to lift on 26 May.
MA Financial pauses trading
The news: MA Financial is in a trading pause ahead of an announcement.
The context: On Wednesday, the asset manager said it was in talks to acquire real estate asset manager IP Generation.
IPG is based in Victoria and has about $2 billion in assets under management.
