Praemium's Acquisition of Iress OneVue Platform Business

Praemium Limited (ASX: $PPS) has announced the conditional agreement to acquire 100% of the Iress OneVue Platform Business (IOPB) from Iress Limited (ASX: $IRE). The up-front cash consideration for the acquisition is $1.0 million, with a potential earnout of up to an additional $20.0 million linked to growth in Funds Under Administration (FUA). The acquisition is expected to significantly increase Praemium's platform business scale, with the current IOPB FUA of $4.0 billion driving this material growth.

Executive Commentary on the Acquisition

Praemium CEO Anthony Wamsteker expressed excitement about the acquisition, highlighting the potential for superior client outcomes, material synergies, and boosted EPS accretion for shareholders. Praemium Chair Barry Lewin emphasized the strategic nature of the acquisition, delivering on shareholders' expectations and enhancing the partnership with Iress. Both executives expressed confidence in the seamless transition for clients and the future opportunities to enhance Praemium's market position.

Summary of Praemium's Acquisition and Outlook

Praemium's acquisition of Iress OneVue Platform Business is a significant move that is expected to drive a substantial increase in the company's platform business scale. The consideration structure, with an earnout linked to FUA growth, aims to ensure client retention and FUA growth while maintaining service quality. The acquisition is anticipated to be mid-teens EPS accretive post-transition, underlining its compelling strategic rationale. Praemium's focus on a seamless client transition and capitalizing on future opportunities reflects the company's commitment to enhancing its market position. The acquisition is set to enhance the partnership with Iress and deliver on shareholders' expectations for earnings accretive growth options within Praemium's core business.