Bravura Solutions Limited (Bravura), a global supplier of wealth management applications and professional services, and Citi's Global Transaction Services, have finalized an outsourcing agreement for the provision of transfer agency technology services to Citi's Securities and Fund Services business in the European Region.
As part of the agreement Bravura has acquired Citi's Warsaw-based transfer agency software platform (including its employees) for consideration of US$21 million (A$31.99 million). The acquisition is expected to be EPS accretive in FY09 and beyond, and generate strong recurring revenues and cash flow. The acquisition was funded using current facilities and the operating cash flows generated by the business over a three year period.
This mutually beneficial agreement will strengthen Bravura's position as the largest transfer agency application provider in Europe and will enable Citi's Securities and Fund Services business to better meet evolving client needs relating to transfer agency services and distribution support. Citi's Global Transaction Services offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organisations around the world.
The deal will deliver significant strategic benefits to Bravura. These include greater global reach, with a larger footprint in Eastern Europe, and an extension of Bravura's knowledge base and expertise in the transfer agency market. It will cement Bravura's position as the largest transfer agency application provider in Europe - in keeping with its vision of being the leading wealth management solutions provider outside of the US.
Commenting on the alliance, Bernard Hanratty, Managing Director, Head of Citi's Fund Services in Europe, the Middle East and Africa, said: "This agreement benefits all parties - Citi, our clients, our employees and Bravura. Given that the technology requirements in this market continue to increase in complexity, we are pleased to be working with a best-in-class technology and client support provider with a strong reputation for innovation and product development in the Transfer Agency field. Additionally, Bravura will offer the affected employees stronger career growth potential. For Citi, this will result in reduced operating expenses while providing the long-term infrastructure to enable us to meet the growing geographic scope and sophistication of our clients distribution needs."
Bravura Group CEO and Managing Director, Iain Dunstan said: "This agreement represents a significant step in furthering Bravura's geographical and product reach and continues Bravura's successful practice of supporting the financial services industry. This relationship will assist us in growing our customer base, increasing the scope of our product range and increasing our capability to deliver to our customer's sophisticated and growing requirements. We will do this whilst delivering strong contracted recurring revenue and margins.
The synergies between the two companies and the expertise of teams involved will create a truly advanced and exciting offering to our current and potential clients."
The deal will secure an estimated US$19 million (A$30 million) in revenue for Bravura over the initial term, with an option to extend.
Bravura Solutions now services over 180 clients from 15 offices in 10 countries around the world, and administering more than 18 million accounts and US$1.1 trillion in funds managed globally.