ASX-listed Iress enters into a binding agreement to sell Superannuation business to Apex Group

ASX-listed Iress Limited have today announced that it has entered into a binding share sale and purchase agreement to divest its Superannuation business to Apex Group, a global financial services provider.

The decision for Iress to divest the Superannuation business follows a strategic review as part of the company’s transformation program which determined that 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.

The Transaction is structured to release $A40 million in cash consideration upon completion plus additional payments of up to $A20 million over 12 months subject to agreed revenue milestones. Completion is expected in the second quarter of 2025 and is subject to Foreign Investment Review Board approval, novation of a material customer contract and customary warranties and indemnities.

Following completion, Iress will continue to provide certain services for a period of up to 18 months to assist in the transition of the Superannuation business to Apex Group’s ownership.

The announcement follows Apex Group last year establishing Apex Super – its Australian Superannuation business in partnership with data and technology platform provider Novigi – in response to a growing commitment to the broader Australian market and superannuation industry in particular.

Iress Group CEO, Marcus Price, said, “As part of our transformation, Iress has streamlined its operations to focus on our core strengths in software delivery and to exit businesses with a higher regulated service profile. Apex Group is recognised as a global leader in the provision of fund and asset servicing to regulated financial services businesses.

“We are delighted with this outcome, which is a great result for all parties – clients, employees and shareholders – and will see the Superannuation business strengthened under new ownership. Importantly, Iress will continue to play an important role in the growth of the Superannuation industry through the provision of advice and education software to funds and their members.

“Today’s announcement enables Iress to double down on our core markets and customers in Wealth, Trading and Market Data; while continuing to improve our operational strength underpinned by a robust balance sheet and improved earnings profile.”

Apex Group Founder and CEO, Peter Hughes, added, “We are very pleased that Iress’ Superannuation team and clients will be joining the Apex Group. Increasing member engagement and improving the member experience is a focal point of our industry. The Acurity platform is well recognised as a market leader, and we look forward to building on this ensuring readily available access to data and flexibility in order to support clients to increase their efficiency, scale and value to members.”