The ASX-listed financial services software firm, Iress, has offloaded another piece of the furniture after selling its Australian superannuation unit to global administration roll-up giant, Apex Group, for a maximum A$60 million.
In a deal worth A$40 million in cash plus up to A$20 million continent on meeting future revenue targets over the following 12 months, Apex is expected take over the Iress super arm including the Acurity platform in the second quarter of this year.
Iress has sold several ‘non-core’ businesses over the last couple of years as part of a ‘transformation’ program including its investment platform, managed funds administration service, UK mortgage arm and the Pulse portfolio management software system (to the NZ-based SecuritEase group).
(Among other projects, SecuritEase, was involved in the now-aborted ASX mission to build a blockchain-based securities settlement system.)
The latest sale leaves Iress as a software provider for financial markets and wealth management in a product line-up that includes the Xplan financial advisory system popular in both Australia and NZ.
Marcus Price, Iress group chief, said in a release that the sale enables the company “to double down on our core markets and customers in Wealth, Trading and Market Data; while continuing to improve our operational strength underpinned by a robust balance sheet and improved earnings profile”.
Iress reported net profits of almost A$17.3 million for the six months to June 30 last year compared to a loss of about A$140 million for the same period in 2023.
Price replaced long-standing Iress chief, Andrew Walsh, in October 2022 ahead of a planned corporate diet.
The Iress 2023 annual report notes that “the company had become too complex, made acquisitions that did not consistently meet financial or operational hurdles and had taken its eye off customer experience, while carrying an unsustainably high cost base”.
Meanwhile, the Bermuda-headquartered Apex has been on a buying spree in Australia and NZ over the last few years, snapping up Australian fund administration operator, Mainstream, in mid-2021 before crossing the Tasman to buy MMC later that year.
Apex also acquired the Wellington-based fund-hosting and investment platform provider (InvestNow), Implemented Investment Solutions, in 2022, and the unit-pricing and fund accounting arm of Trustees Executors in 2024.
Last year the company formed Apex Super in a partnership with Australian data specialist, Novigi.
US private equity manager, TA Associates, took a “significant minority” stake in Apex in 2021.