Britain's largest investment platform, Hargreaves Lansdown, has agreed to a £5.4 billion takeover by an international consortium, marking the end of its time as a publicly listed company.

The deal, announced on Friday, is the second largest by value for a London-listed company this year.

The consortium, consisting of Europe's largest private equity firm CVC Capital Partners, Abu Dhabi's sovereign wealth fund, and Swedish private equity firm Nordic Capital, has offered 11.40 pounds per share in cash. This final offer represents a significant premium over Hargreaves Lansdown's share price before the takeover approach was made public in May.

Co-founders and top shareholders Peter Hargreaves and Stephen Lansdown, who established the company in 1981 and listed it in London in 2007, have backed the deal. Mr Hargreaves plans to reinvest half of his 19.8 per cent stake in the private company, while cashing out the remaining 535 million pounds. Mr Lansdown stands to make 309 million pounds from the transaction.

The consortium cited the need for a "substantial transformation" of the company, including investment in technology, to keep pace with rivals in the competitive UK wealth market. Peel Hunt analysts noted that while the price is not huge, it appears to reflect the investment required.

The UK wealth management sector has seen intensifying competition in recent years, with international financial groups entering the market and increased focus on wealth management by some UK retail banks, insurers, and asset managers. US investment giant Vanguard has been expanding its UK Personal Investor platform, while US retail trading platform Robinhood launched in Britain in March.

Hargreaves Lansdown also reported its annual results, with adjusted pretax profit of 456 million pounds, surpassing analysts' expectations. However, net new business was down 13 per cent year-on-year at 4.2 billion pounds.

The takeover deal offers Hargreaves Lansdown investors an alternative to the cash offer, with the option to roll over their shares into a stake in the private company. However, this may exclude some existing shareholders who are unable to hold shares in an unlisted company.

As of March, Hargreaves Lansdown was the largest UK-based investment platform in Britain by assets, second only to Netherlands-based Aegon overall, according to Fundscape data.

The deal reflects the ongoing trend of takeovers of British companies and highlights the evolving landscape of the UK wealth management industry. It remains to be seen how this acquisition will shape Hargreaves Lansdown's future and its competitive position in the market.

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