Kalkine: ARC Funds’ Full Acquisition of TTDS Marks Strategic Growth Step for ASX300 Player

June 11, 2025 03:16 PM AEST | By Team Kalkine Media
 Kalkine: ARC Funds’ Full Acquisition of TTDS Marks Strategic Growth Step for ASX300 Player
Image source: Shutterstock

Highlights

  • ARC Funds (ARC) seeks full control of TTDS through a share-based proposal
  • Deal aligns with ARC’s platform expansion strategy
  • Move could enhance fund scale and distribution capabilities

ARC Funds Limited (ASX:ARC) has announced its plan to acquire the remaining 36.51% stake in The Term Deposit Shop Pty Ltd (TTDS), aiming to fully integrate the business into its broader growth strategy. The acquisition offer will be executed via a scrip deal, giving minority shareholders of TTDS 21.72 ARC shares for each TTDS share held. This exchange ratio is based on an ARC share valuation of 11.5 cents, aligning with the company’s recent capital placement on 12 May 2025.

Strategic Objective Behind the Acquisition

TTDS, a fast-growing financial services entity, has recorded an impressive compound annual growth rate (CAGR) of 42.8% over the past six years. ARC’s strategic vision includes capitalising on this growth by integrating TTDS’s distribution channels and client relationships. The move is intended to strengthen ARC’s multi-affiliate platform, potentially boosting its Funds Under Management (FUM), which already exceed $530 million.

Bringing TTDS completely under its umbrella would allow ARC to streamline its operations and execute marketing and distribution initiatives more effectively. These initiatives are likely to support the launch of additional income-oriented products, expanding ARC’s offerings in a competitive investment landscape.

Shareholder Approval in Focus

The issuance of new ARC shares to TTDS shareholders is contingent upon shareholder approval, which will be sought at an Extraordinary General Meeting scheduled for early August 2025. If the resolution passes, ARC will gain full ownership of TTDS, positioning itself to further solidify its presence among the emerging ASX300 players.

Leadership Perspective

According to ARC’s Managing Director, the move is a logical progression in the company’s evolution and could unlock meaningful value for all shareholders. TTDS has served as a foundational piece in ARC’s journey and is expected to contribute significantly to its broader income product distribution strategy.

For investors and market watchers interested in ASX dividend stocks, ARC’s evolving portfolio and income-oriented focus could be worth noting as the company positions itself within this space.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.