• Call option to acquire 63.49% stake in The Term Deposit Shop and 100% of TTDS Holdings
• The Term Deposit Shop operates an online cash management platform for term deposits and high-interest savings
• Significant opportunity to grow funds under management on the platform, which currently exceeds $550m

ARC Funds Limited (ASX:ARC) has acquired a call option for a nominal fee, which, if exercised, will result in ARC (subject to existing shareholders of The Term Deposit Shop (TTDS) not exercising their pre-emptive rights) acquiring 63.49% of TTDS and 100% of TTDS Holdings from the founder, Mr Grant Goodier. TTDS owns and operates an online cash management platform designed to streamline the process of investing cash and switching between banks, empowering investors to maximize their investment returns with minimum effort. The platform allows financial planners and direct TTDS clients to find, compare and invest in term deposits and high-interest savings accounts across numerous Australian banks, Building Societies and Credit Unions. TTDS has more than $550m of funds under management on its platform and is approved on over 100 Australian Financial Services Licensees' Approved Product Lists, facilitating deposits and transactions with more than 10 Australian banks. The strategic rationale for the acquisition is that the total amount of funds in term deposits in Australia is approximately 1 trillion dollars, presenting a significant opportunity for TTDS to exponentially grow the amount of deposit funds under management on its platform. If the call option is exercised, it would complement ARC's stated objective of offering a range of investment opportunities, across multiple asset classes to its clients.

If the call option is exercised, ARC will acquire a 63.49% stake in The Term Deposit Shop and 100% of TTDS Holdings for a total purchase price of $2,380,709.60, subject to certain adjustments.