Iress CEO Andrew Walsh (Source: Twitter)

Madison Financial Group didn’t factor in Iress’s deal on Monday to buy OneVue, but the two businesses are expected to be linked through a white label partnership.

An announcement regarding the sale of Madison was originally expected at the end of April and sources confirmed on Monday afternoon this announcement was “very imminent”.

The separate deal in which Iress has agreed to acquire OneVue was announced on Monday along with an equity capital raising by the ASX-listed Iress. OneVue, the business led by CEO Connie Mckeage, has a secured interest in the receivables owed to it following the collapse of Sargon Group and Madison was one of these receivables.

OneVue shares were trading 56 per cent higher on Monday afternoon than at the start of the day when the deal was disclosed to the market.

Iress’s 40 cents per share offer is a 67 per cent premium to OneVue’s May 28 spot price of 28 cents per share; a 61 per cent and 19 per cent premium to the volume weighted average price of OneVue shares in the six months and 12 months respectively leading up to the announcement, according to an Iress investor presentation.

As part of the OneVue acquisition Iress will acquire the country’s largest third party fund registry business, a third-party administration services business as well as a white labelled online investment solutions business.

OneVue has secured interest over financial planning licensee Madison, which has an existing white labelling agreement with OneVue. This relationship is expected to be transferred to Iress assuming the deal with OneVue is completed. Madison signed a five-year extension to its WealthPortal white label in 2018.

Iress’s proposed acquisition of OneVue is expected to close in the third quarter of this year in the absence of a superior proposal and subject to an independent expert’s report and customary conditions.

PwC are the receivers of the Sargon receivables and are in charge of the sale of Madison, a process run by boutique consultancy, Seaview.

Clime Investment Management confirmed via an ASX announcement in mid-May has been in discussions in relation to the acquisition of Madison.

Iress CEO Andrew Walsh told Professional Planner on Monday the deal with OneVue was all about creating efficiency for financial advisers who will be able to benefit from better connectivity between fund registry and Iress’s front end software.