Iress Limited (ASX: IRE) has announced a binding agreement to sell its Superannuation business to global financial services provider Apex Group Ltd. as part of its strategic transformation program. The move aligns with Iress’ decision to focus on its core strengths in software delivery and exit regulated services businesses.
Deal Overview
- Transaction Value:
- $A40 million cash consideration upon completion.
- Up to $A20 million in additional payments over 12 months, subject to revenue milestones.
- Completion Timeline: Expected in Q2 2025, pending approvals.
Strategic Rationale
Iress’ strategic review identified that while the company has strong opportunities within its Wealth business to deliver software to superannuation funds, it was not the natural owner of a regulated superannuation services provider.
Marcus Price, Iress Group CEO, stated:
“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 divestment aligns with Iress’ transformation strategy, streamlining its focus on core operations and enabling reinvestment into key areas of growth.
Transition and Partnership
Upon completion of the transaction, Iress will:
- Continue providing transitional services for up to 18 months to ensure a smooth handover.
- Maintain its presence in the Superannuation industry through advice and education software tailored for funds and their members.
Apex Group’s Perspective
Peter Hughes, Apex Group Founder and CEO, emphasized the importance of the acquisition in enhancing member engagement and improving user experiences. Apex plans to leverage Iress’ Acurity platform, recognized as a market leader, to support clients with increased efficiency, scalability, and value delivery to superannuation members.
Apex established Apex Super, its Australian Superannuation business, in partnership with data and technology provider Novigi, signaling its growing commitment to the Australian market and superannuation industry.
Closing Conditions
The transaction is subject to:
- Approval from the Foreign Investment Review Board (FIRB).
- Novation of a material customer contract.
- Compliance with customary warranties and indemnities.
Iress’ Future Focus
Following the divestment, Iress will:
- Reinforce its position in Wealth, Trading, and Market Data sectors.
- Build operational strength through a stronger balance sheet and enhanced earnings profile.
This move positions Iress to capitalise on its software expertise while leaving the regulated superannuation services space to a global player like Apex Group.
