Iress has entered into a binding share sale and purchase agreement to divest its superannuation business to Apex Group, a global financial services provider, citing findings from a strategic review conducted as part of its transformation program.
In its ASX filing on Monday, the company explained that while it remains committed to providing software solutions to superannuation funds through its wealth business, it does not see itself as the ideal owner of a regulated superannuation services provider.
The transaction is structured to release $40 million in cash consideration upon completion plus additional payments of up to $20 million over 12 months subject to agreed revenue milestones.
Iress Group CEO Marcus Price said the announcement enables the firm to “double down on our core markets and customers in wealth, trading and market data”.
“As part of 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,” Price said.
“We are delighted with this outcome, which is a great result for all parties – clients, employees and shareholders – and will see the superannuation business strengthened under new ownership. Importantly, Iress will continue to play an important role in the growth of the superannuation industry through the provision of advice and education software to funds and their members.”
The transaction is expected to be completed in the second quarter of 2025 and is subject to Foreign Investment Review Board approval, novation of a material customer contract and customary warranties and indemnities.
Following completion, Iress said it will continue to provide certain services for a period of up to 18 months to assist in the transition of the superannuation business to Apex Group’s ownership.
The announcement comes after Apex Group launched Apex Super, its Australian superannuation business, last year in collaboration with data and technology platform provider Novigi.
Apex Group founder and CEO Peter Hughes said: “We are very pleased that Iress’ superannuation team and clients will be joining the Apex Group. Increasing member engagement and improving the member experience is a focal point of our industry.
“The Acurity platform is well recognised as a market leader, and we look forward to building on this, ensuring readily available access to data and flexibility in order to support clients to increase their efficiency, scale and value to members.”
