IWL confirms merger with Iress

Australian sharemarket information system Iress Market Technology Ltd said today it would merge with web based financial advisory technology company IWL Ltd.

The merger will see IWL shareholders receive 10.5 cents cash and 0.07086 Iress shares for each IWL share, which values IWL at $87.8 million.

The deal is still subject to court and IWL approval.

The proposed deal will see the merged entity be Australia's leading provider of financial information an technology with 5400 financial planning software licenses and more than 7000 Iress licenses.

It will allow Iress to access the fast growing financial planning industry and provides substantial cross-selling opportunities.

"The merger with IWL will enable Iress to share in this growth and through our combined technologies, to offer clients of both companies a one-stop comprehensive solution," Iress managing director Peter Dunai said.

"Iress and IWL have each conducted due diligence on each other and we anticipate that the merger will have no adverse impact on Iress shareholder value in 2003."

At the end of June 30, 2002 IWL had cash and liquid reserves of more than $16 million and is expected to raise a further $4 million through the exercise of current outstanding options.

The proposed deal will result in an additional 21.5 million Iress shares being issued, increasing total shares on issue to 122.1 million.

The agreement between the two companies includes a provision that IWL not solicit alternative proposals as well as IWL needing to pay Iress $1 million under a break fee provision which becomes active if another party acquires 25 per cent of IWL shares, acquires all the assets in IWL or IWL's board changes its recommendation in favour of the merger.

IWL shareholders are expected to meet in September to discuss the merger.

IWL shares are at 26 cents ahead of pre-open at 1110 AEST while Iress shares are at $2.60.