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GBST eats up InfoComp

By Victoria Young
 — 1 minute read
Technology company GBST will double in size following a $56 million acquisition.
Australian technology provider GBST Holdings (GBST) plans to thrust into the UK wrap market with the purchase of software company InfoComp for $56 million.

The deal is for $36.46 million in cash and 4.95 million GBST shares. It will be effective from September 1.

GBST stumped up $16.46 million in cash and arranged a $20 million debt facility.

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Australian Securities Exchange-listed GBST is a major provider of client accounting and securities transaction technology.

The move boosts its drive into wealth management, wrap and master trust administration.

"This provides a substantial new platform for growth and a beachhead into the UK market," GBST chief executive officer Stephen Lake said.

Lake will become chief executive officer and managing director of the combined group.

InfoComp provides funds administration and registry software to the Australian and UK wealth management industries. It was founded in 1988. It has identified growth opportunities in the UK wrap market and plans to invest accordingly.

InfoComp will become the GBST wealth management arm, which will be headed by InfoComp founder Rob DeDominicis.

Fellow founder Ray Tubman will become global head of product strategy.

"We believe there are synergistic opportunities to integrate our software products and that merging with GBST will make a significant difference to the growth of the business," DeDominicis said.

The combined businesses will have 250 staff in Sydney, Melbourne, Brisbane, Wollongong, Adelaide and London.

No redundancies are expected.

InfoComp has a dozen Australian clients. They are JP Morgan, Perpetual Investments, Macquarie Bank Funds Management Group, Credit Suisse Asset Management, Macquarie Bank Financial Services Group, Merrill Lynch Investment Managers, Macquarie Bank Investment Banking Group, Asteron, Oasis Asset Management, LM Investments, RBC Global Services, Fund Host.

It is the second large software company buy out in a week. On Wednesday, Commonwealth Bank of Australia announced its intention to acquire wealth management and broking company IWL Limited for more than $370 million .

GBST eats up InfoComp
Technology company GBST will double in size following a $56 million acquisition.
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