Monday, January 18, 2010
IRESS announces the acquisition of SENTRYi Pte Ltd to initiate its wealth management presence in Asia. This is a valuable step in extending IRESS’ investment and growth strategy in Asia. The acquisition was made through IRESS’ newly founded subsidiary in Asia, IRESS Market Technology (Singapore) Pte Ltd.
The total cost of the SENTRYi acquisition will ultimately be contingent on future growth, and was structured with modest upfront payments. The acquisition was made through IRESS’ newly founded subsidiary in Asia, IRESS Market Technology (Singapore) Pte Ltd.
SENTRYi is an independent software provider, based in Singapore, which develops, distributes and supports its investment planning tools designed for the Asian marketplace. SENTRYi’s software has multi-lingual and multi-location capability and is already deployed in 3 countries where it is used by both tied agency forces and independent planning groups. SENTRYi has its foundation in the emerging wealth management advice markets in Asia, and with IRESS’ backing and technology offerings, is well placed to establish a major role in the region.
IRESS Managing Director, Andrew Walsh said, “SENTRYi has made a solid start in Singapore and the region, and with IRESS providing financial confidence and capacity and with technology synergies, we are confident in the opportunity to grow our Asian wealth management business.”
“Our immediate starting component for growth will be the existing SENTRYi software and the strong relationships already developed by SENTRYi with current and potential key customers. Beyond this, our goal will be to localise existing software functionality and services available in IRESS for the Asian market. Our initial focus is on fresh opportunities, such as extending our risk research and analytics capability for the Singapore market” said Walsh.
The transaction structure represents an acceptable upfront commitment with upside to the vendors based on meaningful growth outcomes. The upfront cash payments amount to SGD 1.296 million, with the final payment assessed in three years based on business growth over that period. The total acquisition price (including the initial payment) will be one times recurring revenue at that time.
Crystallising this business opportunity will require funding support as the business grows and reaches sufficient scale. Similar to IRESS' controlled investment approach for Asian financial markets, the funding gap will be limited to AUD 1 million per annum until the appropriate cost base is in place and positive EBITDA can result. This funding will be in addition to the funding limit of AUD 2 million per annum for financial markets investment in Asia, and will also be excluded from the long standing dividend policy to pay 80% of underlying group profit.
- Modest annualised revenue, structured to move increasingly towards recurring over time.
- Based in Singapore with a smaller presence in Hong Kong, with regional focus.
- Software currently available for Singapore, Hong Kong, Malaysia, and Taiwan.
- Clients and prospects include tied agency forces, IFAs, and high net worth advice firms.
About IRESS Market Technology
- Independent technology provider.
- 450 staff globally.
- ASX Top 200 listed company.
- Principal supplier of financial market and wealth management systems in Australia, New Zealand, Canada and South Africa.
- In Australian and New Zealand financial markets, IRESS is the industry standard for share market information and trading systems.
- Recent expansion into Canada is seeing IRESS fast becoming the tool of choice for Canadian traders.
- IRESS Wealth Management division comprises a range of online and desktop solutions for financial planning professionals. IRESS offers products for all aspects of financial planning including portfolio management, client relationship and practice management, insurance solutions, mortgage qualification, and remuneration management.
- IRESS recently commenced an Asian division to expand its financial markets capability in Asia.
For further information please contact:
+61 2 8273 7000