Iress has announced it is to sell its OneVue platform business to platform technology company Praemium.
This was acquired by Iress as part of its acquisition of OneVue in November 2020.
The acquisition will boost Praemium’s funds under administration by $4 billion, expand its client base, increase market share and strengthen its position in the Australian market.
The consideration for the transaction will comprise up-front cash of $1 million, funded from Praemium cash reserves; and an earnout of up to an additional $20 million based on growth in FUA measured over an 18-month period post completion.
The sale is expected to complete in April 2024 with an 18-month integration process. Iress will continue to provide certain transitional services to the platform business for an expected 18 months.
Praemium chief executive, Anthony Wamsteker, said: “This is an important milestone for Praemium and the beginning of an exciting new chapter in Praemium’s growth story.
“Praemium and Iress OneVue platform business have a mutual objective to help advisers and wealth managers deliver great outcomes through technology-led solutions and an aligned client base and service model, making it a natural fit.
“This is a highly strategic acquisition which adds greater scale and significantly enhances our ability to improve operating margins, capture market opportunities and address evolving client demands.”
Iress group chief executive, Marcus Price, added: “This transaction represents another milestone in our progress towards a simpler, more focused Iress. As part of our refreshed strategy, we are committed to streamlining operations, reducing costs and managing our portfolio of non-core assets for the release of capital to reduce debt.
“[Praemium] is a natural home for the clients and employees of the Iress platform business, and we are delighted to have reached an agreement which is in the best interest of all parties.”
