UBS opts out of V-Wrap project
Financial services software provider Praemium has suffered a setback, announcing to the Australian Securities Exchange today that it would not now be the portfolio administration services provider to UBS’ Australian wealth management business.
Praemium said that while it had been appointed by UBS as its preferred tenderer in November, last year, it had now been informed by UBS that it would not be proceeding with the project.
Commenting on the outcome, Praemium Group chief executive Arthur Naoumidis said that while it was disappointing, the work involved in the process had delivered benefits to the V-Wrap platform.
He said that as a result of the cessation of negotiations, Praemium would be refunding $250,000 advanced by UBS in anticipation of a commercial arrangement being finalised.
Naoumidis said that as Praemium had no debt and its Australian business had continued to grow, this would not have a significant impact on its financial position.
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