Rubik Financial Limited (Rubik, ASX code: RFL), Australia’s largest provider of financial services software, has completed the acquisition of Easy Dealer group’s revenue and commission management software business.
Strategic Importance
Revenue and commission management software for Australian Financial Services Licensees and financial planning practices provide automated management of revenue, including commissions and client fees as well as relevant business information reporting.
Rubik Managing Director Wealth, Wayne Wilson, said that the Easy Dealer acquisition enhances Rubik’s ability to service planners in practices that use financial planning solutions other than COIN.
“This acquisition will provide Rubik with a greater exposure to financial planners that are currently not Rubik Customers, enabling us to expand Rubik’s offering with products such as our scaled advice online platform Provisio, in the coming months,” Mr Wilson said.
Transaction terms
Rubik purchased 100% of the share capital of AMEE IP Holdings Pty Ltd (and all of the units in the AMEE IP Unit Trust – the owner of Easy Dealer Software and all associated intellectual property rights) and AMEE Easy Software Solutions Pty Ltd (trading company), from its owners (the Vendors).
The transaction has been structured with a single upfront payment based on a EV/EBITDA multiple of normalised run rate FY14 EBITDA. The EV/EBITDA multiple is 4.55x, meaning that Rubik prior to adjustments paid the Vendors $2.7million.
About Easy Dealer
Easy Dealer was established by Matthew Meath in 2000, with the launch of the “Easy Brokerage” product. This product provides automatic brokerage allocation, automatic income distribution and instant client segmentation reporting.
“Easy Dealer” was subsequently developed and launched for licensees and aggregators, followed by “Easy Payments” to allow the financial planning industry to take credit card payments and direct debits. It also allowed for “EBAFSL”, an extension of “Easy Brokerage” but with the ability to import revenue statements from product providers.
Today Easy Dealer’s customer base includes hundreds of financial planners and dealer groups located in every state around Australia. Easy Dealer offerings mainly compete with XPLAN’s “Commpay” offering.
