Iress has announced a capital raising at the same time as announcing a scheme of arrangements under which it would acquire OneVue.
The announcement followed hard on the heels of OneVue announcing that its impending sale of Madison Financial Group had become overshadowed by the involvement of a Chinese state-owned enterprise.
Iress announced that it had launched an equity raising with a view to the acquisition of OneVue.
Iress chief executive, Andrew Walsh said the proceeds would be partially used to fund the proposed acquisition of OneVue as well as to strengthen the balance sheet.
The transaction already has the sanction of the OneVue board.
The formal ASX announcement said a Scheme Implementation Agreement had been entered into with OneVue Holdings Limited under which Iress will acquire 100% of the outstanding shares of OneVue and that under the terms of the Scheme, OneVue shareholders will be entitled to receive consideration of $0.40 per share for their OneVue shares representing a 67% premium to OneVue’s closing share price on 28 May 2020 and a 19% premium to OneVue’s 12-month VWAP.
Explaining the move, Walsh, said: “With structural shifts and changing market dynamics, our strategy is to continue to generate long-term growth opportunities, leveraging technology and automation, while helping clients achieve efficiency, compliance and growth.
“The combination of OneVue’s strength and position in administration of managed funds, superannuation, and investments, with Iress’ strength in software and data will drive innovation through technology. This includes the development of software and services that brings advice and investments closer together, resulting in greater efficiency and productivity for professional advisers and businesses in Australia. OneVue has scale in managed funds administration as the largest single third-party fund registry in Australia and there is opportunity to build on OneVue’s business.”
“I am pleased that OneVue’s managing director, Connie Mckeage, will continue to play an important role during the transition period and will consult to us on growth, strategy and clients after completion.”
The ASX announcement said the full OneVue Board of Directors had unanimously recommended that OneVue shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of OneVue shareholders.
OneVue Managing Director, Connie Mckeage, said: “We are pleased to have entered into an agreement with Iress to acquire OneVue. The offer represents a premium to our current share price and a full cash offer provides compelling certainty for our shareholders. Iress is a company we have significant respect for and we know they are committed to continuing to deliver high levels of service and excellence to our clients and are looking forward to working more closely alongside our clients and partners.”
