Iress to acquire UK counterpart for $360 million



Iress has posted a net profit after tax of $17.8 million for the half year to June 30 and will acquire Avelo, a technology provider that operates a similar business in the United Kingdom for $360 million.
The net profit figure is 9.4 per cent lower than reported profits for the same period last year, with Iress stating that this was the result of higher employee benefit expenses and increased staffing numbers across the group's Australian, South African and UK businesses.
Other expenses included increased general and administrative costs in the areas of insurance and professional advice fees, and business acquisition and restructure expenses generated by the investigation of potential acquisitions in growth markets.
As a result of these investigations Iress will acquire Avelo for $360 million, pending UK regulatory approval, with the purchase funded by a mix of cash, new debt and an entitlement offer worth $206 million.
Avelo operates an online quote and application platform for insurance, pensions, investments and mortgages, as well as software systems for financial advisers and mortgage origination and distribution by UK banks and building societies.
Recommended for you
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
Insignia Financial has completed its transition of a range of administration and technology functions to SS&C Technologies as it seeks to be a leading wealth manager by 2030.
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.