GBST acquires InfoComp

GBST acquires InfoComp

Australian fintech vendor GBST Holdings is acquiring Sydney-based wealth management software firm InfoComp in a cash and stock deal worth A$56 million.

Under the agreement A$36.46 million of the purchase price will be paid in cash, with the remainder paid in GBST shares.

Founded in 1988 InfoComp employs 130 staff in offices in Sydney, Wollongong and London. GBST says InfoComp is expected to achieve more than A$7 million annualised Ebitda in FY2008 and annualised revenue of more than A$30 million.

Commenting on the deal, GBST CEO Stephen Lake, says: "The companies are a good cultural fit, sharing recurring revenue licence models, a strong professional service capability and focused development and support teams."

Lake says the acquisition will broaden GBST's technology platform for the financial services sector and provide the firm with a foothold in the UK, where InfoComp recently established operations and signed up banking group Abbey.

"Significant wealth management growth opportunities exist in the UK, where InfoComp has sold its flagship Composer wealth management and funds management system to one of the UK's largest banks, and the growth prospects for the business are very strong," he says.

Following the acquisition InfoComp founders and vendors Rob DeDominicis and Ray Tubman will join GBST's executive team and continue to manage the business. InfoComp will become GBST's wealth management arm, which will be headed by DeDominicis.

GBST says the acquisition will become effective on or about 1 September 2007.

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