The firm confirmed on Monday it has sold its platform business to Praemium for an initial $1 million in cash consideration and a further payment of up to an additional $20 million over an 18-month period as milestones are met.
Iress originally purchased the platform business, which now boasts $4.1 billion in funds under administration, from OneVue, along with their managed fund administration (MFA) and superannuation administration business. The MFA business was sold to SS&C in August 2023 and the superannuation administration business has been retained.
Commenting on the acquisition in a separate statement, Anthony Wamsteker, Praemium chief executive, said: “We have worked very collaboratively with Iress to ensure we met our shared goals and timelines for completion of this acquisition.
“The board is extremely pleased with the opportunity we have before us and remains confident we will deliver on our originally announced synergies and earnings accretion.”
Praemium earlier confirmed the acquisition would expand its client base, increasing market share, and strengthening its position in the Australian platform market.
Back in February, Wamsteker said it is a “highly strategic acquisition” that would add scale and enhance Praemium’s ability to “improve operating margins, capture market opportunities, and address evolving client demands”.
In addition to selling OneVue, Iress has also announced the sale of its UK Mortgages business to Bain Capital for £85 million (AU$164 million). The completion of this transaction is expected in the middle of the year.
Iress Group CEO Marcus Price said the platform divestment is in line with its strategy of refocusing on Iress’ core businesses of wealth, trading, and market data and superannuation.
“This transaction represents another milestone in our progress towards a simpler, more focused Iress. As part of our refreshed strategy, we are committed to streamlining operations, reducing costs, and managing our portfolio of non-core assets for release of capital to reduce debt,” Price said earlier this year.
“Praemium is one of Australia’s leading investment platform providers, currently holding more than $22 billion in funds under administration. It is a natural home for the clients and employees of the Iress Platform business and we are delighted to have reached an agreement today which is in the best interests of all parties.”
