Iress completes superannuation business divestment
Iress has finalised the sale of its superannuation business to global financial services provider, Apex Group.
First announcing in January that it had entered into a binding share sale and purchase agreement to divest its super business, Apex Group purchased Iress’ superannuation arm for $40 million in cash consideration, plus additional payments of up to $20 million over 12 months.
In an announcement to the ASX on 2 June, Iress group managing director and chief executive, Marcus Price, said that the deal would allow the listed company to home in on other key segments within the company.
“As we complete this transaction, I’d like to once again thank our people, clients and partners for their contribution to Iress during our ownership of the superannuation business,” Price said.
“Divesting the superannuation business enhances our ability to focus on our high-quality core businesses of wealth and trading and market data where we see good opportunities for organic growth and higher returns for shareholders.”
Iress will continue to provide certain services to assist in the transition of the business to Apex, for a period of up to 18 months.
The announcement follows Apex Group last year forming its own Australian super business – Apex Super – in partnership with Novigi.
The decision to sell, Iress also said in January, formed part of a broader strategic review amid its transformation program, which concluded that it was not the “natural owner” of a regulated superannuation services provider.
Off the back of said review, the firm also announced in April that it had entered into a binding share sale and purchase agreement to divest its European headquartered low-latency market data business, QuantHouse, to BAHA Tech Holding AG (BAHA).
The data provider will pay Iress €17.5 million ($31.4 million) in cash consideration before costs upon completion, which is subject to customary working capital adjustments, warranties and indemnities.
Earlier this year, Iress stated it had completed its transformation program which was first announced in April 2023 and covered six areas:
- Structure for accountability and improved performance.
- Reset the costs and asset base, including headcount reduction and asset realisation.
- Refocus on the core of wealth management, trading and market data, and superannuation.
- Manage portfolio for value.
- Finish technology uplift, including transition to platform architecture and cloud optimisation.
- Build a new business.
Within this, Iress sold its managed fund administration (MFA) business to SS&C Technologies in August 2023 for $52 million. In February 2024, it announced it would sell its platform business to Praemium and it divested its UK mortgages business to Bain Capital Tech Opportunities LP for $167 million.
AUTHOR
Jessica Penny
Recommended for you
A Supreme Court of Western Australia jury has issued its verdict regarding unregistered MIS operator Chris Marco, who was on trial for 43 fraud charges, with ASIC stating the verdict ends a “sorry chapter”.
ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago.
Financial advice practices may be hiring younger or professional year advisers as a succession option, but they may find they are unable to put up the capital if the adviser looks to retire.
Any changes to product labelling for sustainable funds must be applied consistently across investor channels, including those used by financial advisers, according to RIAA.
