IRESS acquisition bring Pillar sale into play

Publicly-listed financial services technology provider, IRESS has injected itself into the calculations around the NSW Government's sale of Pillar Administration as a result of its move to acquire superannuation-focused software provider, Financial Synergy.

That is because Financial Synergy is Pillar's major provider with respect to the multi-million dollar platform consolidation exercise which is seen as fundamental to the Government's sale process of the administrator and its fortunes thereafter.

IRESS announced the transaction to the Australian Securities Exchange (ASX) yesterday, valuing the exercise at up to $90 million.  

The announcement said that as a result of the transaction, IRESS had launched a fully underwritten institutional placement aimed at raising around $85 million.  

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IRESS chief executive, Andrew Walsh, said the acquisition of Financial Synergy would strongly complement the firm's existing capabilities and focus in Australia.  

"IRESS currently provides a range of solutions to key segments of Australian financial services, underpinned by the growing superannuation industry," he said.

"Financial Synergy increases the range and scale of services and solutions IRESS can provide to clients of both businesses."  

The ASX announcement said Financial Synergy was being sold by its majority owner and founder, David Orford, and the senior management team, with the senior management team being retained and continuing in their roles.

Significantly, Financial Synergy announced only last week that it had opened a new office in Wollongong to house its recently-launched managed services division.