The acquisition of platform provider Hargreaves Lansdown by a private equity-led consortium has moved a step closer today as the scheme of arrangement was officially confirmed.

The publishing of the scheme document signifies that a formal agreement has been reached by the consortium and Hargreaves Lansdown board.

The agreement covers the terms and conditions of the recommended cash acquisition of the company.

The acquisition is to be implemented by a court-sanctioned scheme of arrangement and remains subject to shareholder and regulatory approval.

Hargreaves Lansdown accepted the £5.4bn consortium offer for the company in August.

The consortium comprises CVC, the Abu Dhabi Investment Authority and Nordic Capital, who hold equal weighting in the deal.

Bristol-based HL is one of the UK’s biggest direct to consumer investment platforms with £150bn in assets under administration and 1.858m active clients (April 2024 figures).

The cash offer was originally made on 18 June but was pushed back three times until it was accepted last month. The full price being paid for HL's entire issued shares is approximately £5.443bn.

Bristol-based Hargreaves Lansdown, set up by entrepreneurs Peter Hargreaves and Stephen Lansdown, will be acquired by Harp Bidco Limited. Harp Bidco is a new company which is indirectly owned by CVC Private Equity Funds, Nordic Capital XI Delta, SCSp (acting through its general partner, Nordic Capital XI Delta GP SARL) and Platinum Ivy B 2018 RSC Limited.

Hargreaves Lansdown had earlier rejected a £5bn takeover bid from the private equity consortium in May.

Hargreaves has seen changes to its senior management team in recent times and faced criticism for poor share price performance.

Alison Platt replaced Deanna Oppenheimer as chair of the board in February after Ms Oppenheimer unexpectedly quit in November after activist investors threatened to vote against her re-appointment at the December AGM.

Some investors were unhappy with the firm’s share price performance, including one of HL's founders, Peter Hargreaves. Deanna Oppenheimer served as chair for six years during which time the share price fell from a peak of 2,419p in May 2019 to 706p by the time she quit.