Star Striker Limited, the mining company that recently acquired a financial software provider, has said it was the booming fintech space that led it to swap operations.
ifa reported last month that Star Striker had acquired 100 per cent of Intiger Asset Management and its associated entities. The company will soon cease operating as a mining company and change its name to match Intiger's, Star Striker chairman Mathew Walker told ifa.
He said the decision to swap industries came as the mining sector in Australia was hit by falling commodity prices.
"The existing mineral assets that the company owns were not performing and nor was there any interest from the capital market to provide further funding to continue to pursue these assets," Mr Walker said.
"So we needed an acquisition in order to restore some wealth for shareholders. We looked at acquisition opportunities both within the mineral sector and outside of the mineral sector. But clearly, at present, there is investor appetite for technology – particularly financial."
And Star Striker is not the only one. Mr Walker said that a trend for mining companies to acquire technology firms – in an effort to stay afloat – has recently developed.
"Australia, being a resource-rich nation, has found attracting capital for development of mineral projects extremely difficult," he said.
"We see our role in the capital markets as ensuring the efficient allocation of capital. And, at the moment, the world is telling us we have enough money being spent on resources, and money would be better deployed in the technology sector."
Intiger is known for creating software that digitises and automates components of the financial planning process, including the production of SOAs. It has also designed tools to help eliminate manual paper-based processing and improve back-office operations.
Mr Walker said the goal now is to grow Intiger and its offering, which will involve making new hires.
"One of the key objectives to accelerate the development of that business is to attract some key personnel. So the development funding provided by Star Striker will facilitate that process," he said.
"The transition will happen very readily. At the operational level, no changes are required because we're simply acquiring an existing operating business."
Mr Walker added that before the transition can start, Star Striker must complete a due diligence as well as hold a meeting so that shareholders can vote on the transaction.