Streamlined Iress core earnings rise amid takeover talks

Iress has confirmed early discussions for an acquisition with Blackstone and Thoma Bravo. Meanwhile, the company has reported higher earnings from its core trading and wealth operations.

Iress responded to media speculation on the ASX, confirming it is in early-stage takeover talks with US private equity firms Blackstone and Thoma Bravo.

The ASX-listed financial technology provider acknowledged recent media speculation, revealing it had previously received an approach from Blackstone at $10.50 cash per share, adjusted for any dividends or distributions declared after the proposal date.

That offer, however, has since been withdrawn.

Iress’ board stated it is now engaging with both Blackstone and Thoma Bravo to explore whether an offer could be made for recommendation.

“There can be no certainty that any proposal or offer will be forthcoming from either party, or that any offer, if received, will lead to a binding transaction,” the ASX statement read.

“The Iress board is fully committed to acting in the best interests of, and maximising value for, Iress shareholders.”

It emphasised that shareholders do not need to take any action at this time and pledged to keep the market informed in line with continuous disclosure obligations.

Iress confirmed that Goldman Sachs is acting as financial adviser and King & Wood Mallesons as legal adviser to the company.

Alongside the confirmation of takeover interest, Iress announced that deputy chief executive Harry Mitchell will leave the company after a review determined the position is no longer required.

Group managing director and chief executive Marcus Price thanked Mitchell for his “outstanding contribution” over the past two years.

“Harry oversaw the turnaround of our UK business, a reset in APAC Wealth and led the divestment of Iress’ Superannuation business. We wish Harry all the best for the future,” Price said.

The leadership change coincided with the release of the company’s half-year financial results for the six months to 30 June 2025. The results revealed statutory net profit after tax remained steady at $17.3 million, while revenue fell 3.1 per cent to $299.5 million due to asset divestments.

However, on a continuing business basis (excluding divested operations such as the superannuation arm), revenue grew 6.8 per cent to $249.4 million.

Adjusted EBITDA for continuing operations has risen 8.7 per cent to $60.2 million, supported by pricing gains, productivity improvements and efficiency measures.

Price said the performance reflects the resilience of the company’s trading and wealth businesses.

“Iress’ continuing business has delivered a strong performance in the first half, underpinned by solid revenue growth in our global trading and market data business, and continuing positive momentum in our UK wealth business.”

Moreover, the results revealed that Iress has completed its transformation program, streamlining its operations and using the proceeds from the sale of its superannuation business to reduce debt. Iress’ leverage ratio has dropped to 0.8 times, significantly lower than in the prior period.

“As we enter the next phase of our growth strategy, Iress is well-placed to capitalise on global growth opportunities, leveraging our core capabilities while selectively investing in new trading and wealth technologies,” Price added.

“We see significant opportunities in emerging cloud and AI technologies to enhance trading experiences and expand Iress’ wealth tech suite to meet the needs of the millions of people around the world who don’t have access to the financial advice they need.”

The board has declared an interim dividend of 11 cents per share, 50 per cent franked, payable on 22 September 2025 to shareholders on record as at 25 August 2025.

Iress reaffirmed full-year guidance for adjusted EBITDA between $127 million and $135 million, and underlying profit after tax between $65 million and $73 million.

It has committed to continued investment in its core businesses while accelerating initiatives to capture new revenue streams in data and AI through expanded partnerships and a stronger focus on customer experience.