Praemium announces acquisition of the Iress OneVue Platform Business
Praemium today announced it has entered into a conditional agreement to acquire 100% of the Iress OneVue Platform Business (IOPB) from Iress Limited, marking a significant milestone in Praemium’s strategic growth plans.
The acquisition of OneVue will expand Praemium’s FUA by an estimated $4.0 billion, accelerating its growth plans and leveraging the scale of its investment platform technology and resource base to generate material synergies.
Additionally, it will expand Praemium’s client base, increase market share and strengthen its position in the Australian platform market. OneVue has a robust portfolio of long-term, high-quality clients which are seamlessly aligned with Praemium’s own servicing model. This strategic alignment will facilitate a smooth integration process and positions the combined entity to deliver enhanced value and service offerings to clients.
The consideration for the transaction will comprise up-front cash of $1.0 million, funded from Praemium cash reserves; and an earnout of up to an additional $20.0 million based on growth in FUA measured over an 18-month period post completion.
The sale is expected to complete by end-April 2024. An 18-month migration process will follow to move OneVue clients to the Praemium platform technology. Praemium and Iress are both committed to leveraging their combined strengths to ensure a smooth and efficient transition process, prioritising the continuity of quality services for OneVue clients.
Praemium CEO Anthony Wamsteker commenting on the acquisition:
“This is an important milestone for Praemium and the beginning of an exciting new chapter in Praemium’s growth. Throughout the review process we have been impressed by the quality of the IOPB people and client base. Praemium and Iress OneVue Platform Business have a mutual objective to help advisers and wealth managers deliver great outcomes through technology-led solutions and an aligned client base and service model, making it a natural fit.
This is a highly strategic acquisition which adds greater scale and significantly enhances our ability to improve operating margins, capture market opportunities, and address evolving client demands.
Our focus will be on ensuring a seamless transition for clients and capitalising on the future opportunities to enhance our market position. We especially look forward to welcoming IOPB’s people and clients to the Praemium platform.”