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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
