ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update

Here’s what is happening on Monday…

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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.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Class Limited and Kogan.com ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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