Professional Investment Services (PIS) has ventured into the advisory software market, buying a 25 per cent stake in New Zealand-based Risk Management Solutions (RMS).
RMS produces a comprehensive diagnostic risk management system, which PIS plans to roll out across Australia and possibly into its Asian operations.
Winton Aslin, PIS group manager, international, said acquiring part of RMS’ software business represented PIS’ first foray into financial planning software.
“We’ve never gone into this business before … Obviously we have to be reasonably conservative in the way that we go about this … we’re feeling our way,” he said.
Aslin did not rule out further acquisitions in the software market if the opportunity arose.
As part of the same deal, PIS also acquired RMS’ entire distribution network.
Aslin said the dealer group had been working for the past 12 months with RMS, which has around 35 practices across New Zealand, and had placed several financial advisers in practices within its network.
He said vacancies remained for financial planners in some practices and PIS was actively recruiting to fill the positions.
The acquisition increases PIS’ presence in New Zealand to around 110 practices.
“We’re looking to increase the size of our network over there, hopefully to become a dominant player,” Aslin said.
PIS chief executive Robbie Bennetts also confirmed the group had started due diligence on the purchase of a financial planning business in North America, which has more than 2,000 advisers and is listed on the New York Stock Exchange.
Bennetts could not reveal the name of the planning business, but said due diligence would be completed by the end of November and the companies’ intentions would soon be announced to the stock market.
These activities form part of the dealer group’s ambitious growth strategy, with Bennetts saying “the model we put up virtually doubles the business again in the next two years”.
Bennetts added that the group had revealed its plans at a strategic review and shareholder meeting at the end of October, during which PIS shareholders also finally voted in favour of Aviva’s bid to buy a further 20 per cent of the group.
The sale, which was flagged in April, will take Aviva’s ownership to just over 25 per cent, but Bennetts said contracts were in place to prevent the UK insurer controlling the dealership’s direction.
He said letters of offer were sent to shareholders last week, who now have 30 days to accept.
Bennetts said the sale to Aviva would not affect future decisions about floating the company.
“We can still list in two years if we so desire, if it’s looking good at the time,” he said.
