Iress to acquire Financial Synergy for A$90 million
26 September 2016 | 2366 views | 0
IRESS (IRE.ASX) today announced it has entered into an agreement to acquire Financial Synergy, a leading and established provider of software to the Australian superannuation industry.
The total cash purchase price will be up to A$90 million. The transaction is expected to be more than 2% EPS accretive in 2017.
As a result of the transaction, IRESS is today launching a fully underwritten institutional placement (the “Placement") of approximately 7.49 million shares (“Placement Shares”) to raise approximately A$85 million (at the issue price of A$11.35 per Placement Share). The proceeds of the Placement will be used to fund the Financial Synergy acquisition.
IRESS will also offer all existing eligible shareholders in Australia and New Zealand the opportunity to acquire additional shares (up to a fixed amount) via a non-underwritten share purchase plan (the “SPP” and, together with the Placement, the “Equity Raising”).
FINANCIAL SYNERGY ACQUISITION
IRESS CEO, Andrew Walsh, said: “Financial Synergy is an established and respected software solution provider and is a logical addition for IRESS in Australia. It strongly complements our existing capabilities and focus in Australian financial services, trading and funds management technology, wealth management and advice. It is also in line with our growth strategy.
“IRESS currently provides a range of solutions to key segments of Australian financial services, underpinned by the growing superannuation industry. Financial Synergy increases the range and scale of services and solutions IRESS can provide to clients of both businesses.”