Iress shares lift on super business divestment
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More news: Shares in Iress are up nearly 5% to $9.53 in early trading after the financial services software company agreed to divest its superannuation business to Apex Group following a strategic review.
The deal will release $40 million in cash on completion, plus additional payments of up to $20 million over 12 months, it said.
Iress to sell superannuation business to Apex Group
The news: Financial services software company Iress has agreed to divest its superannuation business to Apex Group following a strategic review.
The numbers: Iress said the deal will release $40 million in cash upon completion, plus additional payments of up to $20 million over 12 months, subject to agreed revenue milestones.
The context: The sale is expected to complete in the second quarter of 2025, subject to Foreign Investment Review Board approval.
Iress will continue to provide certain services for up to 18 months to assist in the transition of the superannuation business to Apex Group.
Melbourne-based Iress said the sale follows a strategic review as part of the company's transformation program, which determined that "it was not the natural owner of a regulated superannuation services provider".
What they said: "As part our transformation, Iress has streamlined its operations to focus on our core strengths in software delivery and to exit businesses with a higher regulated service profile," Iress CEO Marcus Price said.
"Today's announcement enables Iress 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."
The source: ASX announcement
