The proposed merger between financial planning technology companyIWLand sharemarket information system provider Iress Market Technology has been abandoned after both boards agreed the move was no longer in the interests of their respective shareholders.
The deal hit a stumbling block in October when IWL struck a deal to boost its stake in online broking group Sanford, bringing it into conflict with Iress.
In a statement to the ASX in October, Iress explained it was not part of its strategy to actively participate in businesses that were in competition with its core customer base of brokers and wealth managers.
Iress claimed in the statement that it would seek further information about the IWL deal with Sanford before considering its response.
When contacted today, Iress managing director Peter Dunai said that although both companies continue to acknowledge the original rationale for the merger, it would not go ahead.
“It was mutually decided that it is not in the interests of both organisations, and we parted company amicably,” he says.
Dunai says it is the intention of both parties to continue exploring mutual opportunities they had identified over past months.
A vote on the $90 million merger had been scheduled to take place during a meeting of IWL shareholders on November 8.
The merger was originally touted as a move to strengthen the position of both IWL and Iress by giving them access to both the financial planning and stockbroking industries, creating substantial cross-selling opportunities.