ASX-listed Iress has today announced progress against its strategy. The sale of the Managed Funds Administration (MFA) business to SS&C Technologies was completed on Sunday 1 October.
As announced on 21 August 2023, SS&C have purchased the MFA business for a total cash consideration of $52 million subject to customary working capital adjustments. Iress have stated that they will use the net proceeds of the sale to retire debt.
Iress’ Chief Executive Officer Marcus Price said, “In April, we outlined our plans for our Managed Portfolio of non-strategic assets. Our approach has been to set these businesses up for success and identify opportunities to realise value and a return of capital. Having now successfully completed the sale of MFA and launched the sale of our Platforms business, we are now taking steps to accelerate our Managed Portfolio strategy to realise further value for shareholders from these assets.
“Iress today also announces management changes to accelerate its Managed Portfolio strategy. Harry Mitchell will assume an expanded remit as Group Executive for the UK in addition to his existing responsibilities overseeing ANZ Wealth, while Chief Financial Officer Cameron Williamson will take responsibility for managing the divestment of the Platforms business and disentanglement and separation of our South African and Canadian businesses.
“As a result of these changes to the composition of the Managed Portfolio, John Harris and Simon New will be leaving Iress. On behalf of the Board and management team, I’d like to thank John and Simon for their many years of service to Iress. We wish them both well for the future.
“Iress is committed to continuing at pace on its transformation agenda, with our objective to be operating at Rule of 40 returns over the medium term, continued capital releases from the Managed Portfolio, a fully reset cost base and significant debt reduction.”
