Hargreaves Lansdown sale agreed at £5.4bn

Hargreaves Lansdown (LSE:HL) has agreed to a £5.4 billion takeover by a consortium of private equity firms.

Following weeks of negotiations and speculation, the stockbroker’s board and its cornerstone shareholders and namesakes Peter Hargreaves and Stephen Lansdown have agreed a deal that to recommend to the wider shareholder base.

Private equity buyers – including CVC Capital, Nordic Capital, and funds owned by the Abu Dhabi Investment Authority – will pay £11.40 per share in the deal.

It represents a substantial premium, just over 50%, to the share price prior to the pre-offer level of around 740p.

Founders Peter Hargreaves and Stephen Lansdown are said to be pocketing more than £800 million in proceeds – with the former expected to retain half of his holding in the financial services firm.

In a market that’s increasingly digital, with most customers dealing themselves online, and recently saw the entry of Robinhood, the popular American retail trading app,  the new private equity owners will prioritise investment in technology.