Global fund administration firm, MainstreamBPO has entered into an agreement to acquire part of IRESS’ superannuation administration business for $3.5 million.
The announcement to the Australian Securities Exchange (ASX) said the assets were acquired by IRESS in October 2016 as part of its acquisition of Financial Synergy.
MainstreamBPO has executed a business and assets sale agreement pursuant to acquire the technology solution supplier’s super business that provides admin services to customer-owned banks.
IRESS said the provision of these particular services to customer-owned banks were not in line with its future growth plans, and that the transaction was not material to the firm and did not impact any other part of IRESS.
The acquisition aims to expand MainstreamBPO’s presence in the growing super admin sector by adding up to 14 underlying funds, upgraded technology and access to prospective clients.
The transaction involves the deployment of MainstreamBPO’s “lift and shift” outsourcing model to transition the 14 super fund clients to MainstreamBPO’s subsidiary SuperBPO.
The clients have a combined funds under administration of approximately $650 million and include a public offer retail fund for customer-owned banks with Equity Trustees Superannuation as its trustee, and seven retirement savings account customers. The funds will continue to be administered on IRESS’ Acurity platform.
Completion of the acquisition is planned for early October 2017.
MainstreamBPO chief executive, Martin Smith, said the business acquisition was a good strategic fit for the MainstreamBPO group as it added scale to its existing super fund business and new clients through a trustee platform.
Also commenting, IRESS chief executive, Andrew Walsh said: “MainstreamBPO has been a client of IRESS for many years, using our technology solutions to administer individually managed accounts, wholesale mandates and super administration”.
“This capability positions Mainstream BPO to meet the current and future superannuation needs of these customer-owned bank clients,” he said.
The acquisition is subject to typical conditions for a transaction of this nature including approval from the trustee of the public offer retail fund.