Bermudian-founded global financial services provider Apex Group Ltd has been confirmed as the successful bidder in the acquisition of Mainstream Group Holdings Limited.

The board of Australian-based Mainstream announced acceptance of Apex’s offer of AUD$2.80 ($2.09) cash per share by way of a scheme of arrangement. The offer implies an enterprise value for Mainstream of approximately AUD$415 million ($310 million), including transaction costs and net debt. The competing bidder declined to exercise its matching right to match or offer more favourable terms.

Mainstream is a specialist third party administrator for the financial services industry. It has given a notice of termination under the Scheme Implementation Deed with the previous competing bidder, and it has now entered into a SID with Apex.

Mainstream directors unanimously recommend that shareholders vote in favour of the Apex scheme of arrangement.

With the addition of Mainstream, Apex will have 50 offices worldwide, close to 5,000 employees, and servicing nearly $1.4 trillion in assets across administration, depositary, custody and under management.

The transaction is subject to customary conditions, including approval by Mainstream shareholders, the relevant Australian court and certain regulatory approvals, and is expected to close in the fourth quarter of 2021.

Peter Hughes, founder and CEO of Apex Group, said: “We are pleased to announce our successful bid for Mainstream which was made on the strong belief that Apex would provide the best platform for the company’s continued success and expansion. At Apex, we are committed to continually enhancing our single-source model, and this acquisition would expand our ability to support new and existing clients across all aspects of their business with an enhanced product offering – no matter where they are in the world.”

Martin Smith, CEO of Mainstream, said: “We are delighted to recommend that shareholders vote in favour of the Apex scheme of arrangement. In addition to representing excellent shareholder value, the proposed acquisition would provide Mainstream clients with access to a significantly broader range of solutions and technology investment via Apex’s global network. Apex has successfully integrated a number of strategic acquisitions in recent years, with 99 per cent client retention rates, and we anticipate a similar outcome for Mainstream. We see an acquisition by Apex as beneficial for our clients, shareholders and employees.”