IRESS has announced its acquisition of an international market data provider, which will continue to be operated by its founder and CEO within the IRESS group.
Established international market data provider QuantHouse is being sold to IRESS by its co-founder and Pierre Feligioni for a total purchase price of up to €38.9 million ($62 million) subject to material earnout performance criteria through to 2021. All QuantHouse management and employees will join IRESS. The QuantHouse team will continue to be led by Mr Feligioni within IRESS.
QuantHouse operates internationally, with a focus on Europe, North America and Asia, providing more than 145 data feeds from exchanges and other data providers to clients globally.
IRESS CEO Andrew Walsh said the provision of accurate, timely and cost-effective market data through software and to a range of clients is an important part of IRESS’ current and future business and its growth strategy.
“QuantHouse is highly complementary and strategically aligned to IRESS’ existing and future activities and to its international offering, including IRESS’ increasing focus on data. The acquisition will further strengthen IRESS’ international market data business and provide opportunities to achieve cost synergies and scale.
“Importantly, the acquisition will expand IRESS’ offering to clients globally. In particular, the acquisition will allow IRESS to provide clients with real-time access to additional services, including international exchanges, with global MSCI coverage increasing from 52 per cent to 75 per cent. It will also meet client demand for increased channels for data beyond desktops.”
Mr Walsh said all QuantHouse staff, including senior management, will be a core part of the IRESS team.
“We warmly welcome the QuantHouse team to IRESS. QuantHouse reflects IRESS with its international, strong and entrepreneurial approach. QuantHouse’s highly regarded team of experts will help IRESS further strengthen the products and services we provide to our clients. In addition, the introduction of IRESS will broaden QuantHouse’s current offer to its clients,” he said.
Mr Feligioni said: “The QuantHouse team and myself are very excited to be a part of IRESS. Together, we can continue to innovate by growing our respective product scope and further developing a new generation of services for the best interests of both IRESS and QuantHouse clients and partners. By working together, we will speed up innovation and uncover new ways to create value.”
The acquisition comes after IRESS chief executive Andrew Walsh maintained the outlook the company provided in its full-year results in February, expecting year-on-year segment profit growth between 6 to 11 per cent on a constant currency basis.
“We are experiencing sustained growth in wealth management, underpinned by existing and extended capability, including in data analytics software and superannuation,” Mr Walsh told investors and the group’s AGM earlier this month.
“This is against a backdrop of increased regulatory scrutiny for clients and the spotlight of the royal commission.”
IRESS chair Tony D’Aloisio said that while the company was not directly involved in the royal commission, it is examining and assessing its recommendations around culture, governance and remuneration.
“More importantly, at a strategic level, IRESS is focused on the opportunities for its business in the changes that the implementation of those recommendations will have on the financial services sector,” Mr D’Aloisio added.
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