The purchase price is £210 million (approximately AU$361 million) in cash, which will be funded by a combination of internal cash resources, new debt, and an entitlement offer.
The acquisition is subject to regulatory approval from the UK’s Financial Conduct Authority, as well as Avelo making accounting adjustments in line with IRESS’s accounting policy.
IRESS chief executive Andrew Walsh said the purchase of Avelo was a “unique and attractive opportunity to establish scale, revenue and relationship footprint in the UK”.
“Avelo also introduces mortgage sourcing and distribution technology strength that will expand IRESS’s capabilities within financial services,” said Mr Walsh.
After the acquisition is completed, Avelo chief executive will assume the role of IRESS UK managing director, reporting directly to Mr Walsh.
The current IRESS UK managing director, Mark Thelwell, will be responsible for “XPLAN strategic positioning and delivery of commitments”, according to an IRESS announcement on the Australian Securities Exchange (ASX).
