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.
AUTHOR
Staff Writer
Recommended for you
While the Financial Services and Credit Panel can take action on individual advisers’ misconduct, a compliance professional unpacks why the panel does not always subject licensees to further action.
Platform HUB24 has reported $100 billion funds under administration in its latest quarterly results, helped by a 90 per cent rise in platform net inflows.
Progressing digital advice and seeking breakeven in the advice division are part of AMP’s goals for the upcoming financial year as it approaches 1,000 financial advisers in its licensee.
The Rask Group, in partnership with InvestSMART’s new investment platform, has announced three ETF strategies, aimed at empowering financial advisers to create and manage their own ETF portfolios.
