SYDNEY: Iress (IRE.ASX) has announced that it has agreed to sell its Platform business, which it acquired from OneVue in November 2020, to Praemium Limited (PPS.ASX), a platform technology provider listed on the ASX.

The deal (Transaction) will generate up to $21m for Iress, depending on the achievement of certain milestones over the next 18 months. The Transaction will also free up $7m in regulatory capital and other cash assets for Iress, subject to customary completion adjustment.

The completion of the Transaction is expected before 30 April 2024, and is contingent on the Platform business retaining at least 75% ($3 billion) of its funds under administration (FUA) and securing key business banking arrangements with Praemium. Iress will provide some transitional services to the Platform business for an estimated period of 18 months to facilitate the transfer of ownership to Praemium.

The Transaction does not require any financing or regulatory approvals. Iress will use the net proceeds from the Transaction, after deducting transaction costs, to pay off its debt.

Iress Group CEO, Marcus Price, said that the sale of the Platform business is consistent with its strategy of concentrating on its core businesses of Wealth, Trading & Market Data and Superannuation.

He said, “This transaction is another step in our journey towards a more streamlined and focused Iress. We are committed to simplifying our operations, cutting our costs and managing our non-core assets to release capital and reduce our debt.”

He added, “Praemium is a leading investment platform provider in Australia, with more than $22b in funds under administration. It is a suitable home for the clients and employees of the Iress Platform business and we are pleased to have reached a mutually beneficial agreement today.”