Xplan parent company Iress advised the market that it has terminated discussions with global investment firm EQT, putting its plans to divest the company on hold for the time being.
The conclusion of talks between the two companies comes after a ten day extension failed to produce an agreeable outcome, with the exclusivity terms of the contract now expired.
“In our 11 August announcement, Iress advised shareholders that there was no certainty the indicative proposal would result in a binding or formal offer from EQT,” said Iress chair Roger Sharp. “Nevertheless, the Board took the view that it was in the best interests of shareholders to engage further with EQT in relation to the indicative proposal.”
In a recent discussion with Professional Planner to discuss Iress’ big plans beyond Xplan, CEO Andrew Walsh said that while the initial round of discussions had not yielded a result, the deal was “certainly on the table“.
Iress was careful to note the decision to end talks won’t hurt shareholders.
“The announcement today in no way impacts our strategy to accelerate growth and returns to shareholders, as detailed in our announcement of 29 July 2021 and presented at our investor strategy day,” Sharp said. “With our strong operating businesses, favourable industry trends and growth investments, we have a positive outlook.”
The EQT executive team was also keen to paint a positive picture, reassuring the market that the group came across “no red flags” as part of its due diligence.
“During our work we have been able to confirm that Iress is an impressive, technology-focused business with strong market share and a very loyal customer base driven by its market-leading software solutions,” said EQT’s chairman of Asia-pacific, Thomas Von Koch. “We wish management and the company well and have every confidence Iress will continue to be a leader in its field.”