TechnologyAug 19 2021

Iress board accepts takeover bid

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Iress board accepts takeover bid
Jason Alden/Bloomberg
BySally Hickey

The board of Iress has agreed to recommend a bid from private equity group EQT, subject to due diligence.

In a statement released to the Australian stock exchange last week (August 11), the adviser tech provider said a revised offer from EQT of AU$15.91 (£8.34) per share represented “an attractive premium to recent trading levels”. 

The offer price includes a half year dividend for eligible shareholders of up to AU$0.16 per share (£0.08).

The firm’s share price on August 10 was AU$14.36 (£7.53).

The board said it had carefully considered the proposal, and will recommend it to shareholders pending EQT's due diligence.

It said: "The board has carefully considered the proposal...and considers it in the best interests of shareholders to engage further with EQT in relation to the proposal". 

It added: “Iress has agreed to grant EQT a period of 30 days to undertake its due diligence.”

EQT is a private equity group headquartered in Sweden.

EQT had previously made two proposals to Iress on June 18 and July 4, both of which the latter rejected.

There has been an increased level of acquisition activity in the adviser tech space in recent months.

Earlier this year FE bought cashflow planning provider CashCalc and Californian software provider AssetMark bought financial planning software provider Voyant.