Iress completes platform sale to Praemium
Iress has completed the sale of its platform business, bringing $4.1 billion in funds under administration over to Praemium.
As announced in late February, the firm said it would sell its platform business to Praemium for an initial $1 million cash consideration. At the time, Iress CEO Marcus Price said the decision to opt for Praemium was a “natural home” for the platform.
In an ASX statement on 15 April, Iress said the deal has now been successfully completed and the proceeds of the asset sales will be used to retire debt.
“Further payments of up to an additional $20 million over an 18-month period will be made as milestones are met. As a result of the transaction, there is also a release of approximately $7 million in regulatory capital and other cash assets to Iress by way of a customary completion adjustment.
Anthony Wamsteker, Praemium chief executive, said: “We have worked very collaboratively with Iress to ensure we met our shared goals and timelines for completion of this acquisition.
“The board is extremely pleased with the opportunity we have before us and remains confident we will deliver on our originally announced synergies and earnings accretion.”
These synergies include expanding Praemium’s client base, increasing market share and strengthening its position in the Australian market.
The firm is also selling its UK mortgages business to Bain Capital for $164 million, and this is expected to conclude in the middle of 2024.
This is a software-focused fund and Bain said it intends to combine the mortgages business with another UK mortgage software provider – Finova – to establish a new entity.
Iress acquired the UK mortgages business over 10 years ago, during which time it has become a leading provider of mortgage origination software in the UK.
Net proceeds from the sale are expected to be approximately $135–$141 million and are expected to make a “material difference” to the firm’s net debt position and strengthen its balance sheet.
AUTHOR
Laura Dew
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