Insignia CEO Scott Hartley (left) and Iress CEO Marcus Price

Two major Australian financial services businesses, Insignia Financial and Iress, have made agreements with overseas buyers – one for an acquisition, the other for a divestment. 

Insignia Financial will open its books to CC Capital after the US-based private equity firm’s improvement of its valuation of the company to just over $3 billion, while Iress has divested its superannuation business. 

The latest proposal was announced 17 January for $4.60 cash per share, coming just a week after Bain Capital had offered a revised deal to match CC Capital’s original offer of $4.30 per share. 

It’s the latest bid in a back and forth between two US-based private equity firms which started with Bain offering $4 per share to acquire the struggling listed company in the waning days of 2024. 

“In order to determine if CC Capital is able to formulate a further improved proposal from that reflected in the CC Capital revised indicative proposal, Insignia Financial has offered to provide to CC Capital a limited period of access to certain non-public information on a non-exclusive basis,” Insignia’s announcement to the ASX said. 

“The provision of this information is subject to certain conditions, including the signing of an appropriate confidentially and standstill agreement by CC Capital.” 

The limited due diligence does not guarantee CC Capital’s revised offer will result in a binding offer or one that will be recommended by the Insignia board. 

Iress moves super business 

While Insignia is weighing up the right suitor, Iress has agreed to divest its superannuation business to Bermuda-based global financial services provider Apex Group.  

Iress is known for its market dominant financial advice customer relationship manager/back office Xplan software. Like Insignia, Iress underwent a strategy to streamline its business operations after a period of building out its capabilities into different sectors. 

The firm’s superannuation business includes registry and administration software and services: Acurity Registry, Acurity Online, Iress Administration Services and SuperConnector.

The deal is worth $40 million, which will be paid in cash after completion, plus additional payments of up to $20 million over 12 months dependent on revenue milestones. Completion is expected in 2Q25 and is subject to Foreign Investment Review Board approval. 

“…while Iress sees opportunities within its wealth business to continue delivering software to superannuation funds, it was not the natural owner of a regulated superannuation services provider,” Iress said in its announcement to the ASX on Monday morning. 

A spokesperson for Iress told Professional Planner today’s announcement is not related to nor will impact the legal proceedings against the firm by ESSSuper.

Following completion of the deal, Iress will continue to provide “certain” services for a period of up to 18 months to assist in the ownership transition. 

Apex Group established Apex Super last year, which is a business partnership with data and technology platform provider Novigi. 

Iress had announced a strategy review of its business in 2023 and has since divested its Managed Funds Administrative business to SS&C Technologies, and it’s UK mortgage sales and originations business to Insignia bidder Bain. 

It had also sold off the OneVue platform business to Praemium to help better manage potential conflicts of interest as it launched its Connectivity Network to better assist with integration across various platforms and software providers. 

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