At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.4% to 7,391.5 points.
Here’s what is happening on the market today:
Aristocrat Leisure announces major acquisition
The Aristocrat Leisure Limited (ASX: ALL) share price is in a trading halt today so that it can undertake an equity raising to fund a major acquisition. According to the release, the company has made a cash offer to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion. This represents a valuation multiple of 11.4x Playtech’s adjusted EBITDA for the twelve months ended 30 June 2021.
HUB24 to acquire Class
The HUB24 Ltd (ASX: HUB) share price is trading lower today despite announcing a deal to acquire Class Ltd (ASX: CL1). According to the release, the company is acquiring the self-managed super fund (SMSF) administration software provider for 1 HUB24 share for every 11 Class shares owned. In addition, HUB24 will provide 10 cents per Class share in cash. Combined, this represents a 71.6% premium to Class’ last close price.
Zip Q1 update
The Zip Co Ltd (ASX: Z1P) share price is dropping on Monday despite announcing a record first quarter performance. The buy now pay later provider reported record quarterly revenue of $136.8 million, up 89% year-on-year. This was driven by a 101% increase in quarterly transaction volume to $1.9 billion and an 82% jump in customer numbers to 8 million. Zip also revealed that it successfully completed a global rebrand across six countries during the quarter.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has been the Nickel Mines Ltd (ASX: NIC) share price with a 4% gain. This morning Ord Minnett initiated coverage on the nickel producer with an accumulate rating and $1.10 price target. The worst performer has been the Kogan.com Ltd (ASX: KGN) share price with a 4% decline on no news.