The final sale price depends on Garradin Portfolio Investment Management Solutionsâ (Garradin) performance during the agreed 12-month earn-out period.
The acquisition of Garradin will increase Bravuraâs client base to more than 175 financial institutions globally, and make Bravura the largest managed accounts software provider by assets under management to Australian fund managers. Bravura will gain about 20 staff under the acquisition and expects to integrate Garradinâs operations into Bravuraâs existing offices in Sydney and Melbourne following completion.
Mr Iain Dunstan, Bravura Group CEO and Managing Director, said: âBravura is well positioned to acquire and grow the Garradin business as there are strong synergies between the companies. Both have significant experience in developing software solutions to administer a comprehensive range of financial products.
âOne of the key reasons we pursued Garradin is its retail portfolio management expertise with SMAs (Separately Managed Accounts) and IMAs (Individually Managed Accounts). Our alignment with Garradin complements and significantly strengthens Bravuraâs strategic position in the managed accounts market â a market that is expanding at a rapid pace globally.
âThere are also exciting cross-selling opportunities between our companies, and the expertise of Garradinâs staff will significantly improve Bravuraâs consulting, development, support and testing capability for existing and potential clients. Additionally, this acquisition reinforces Bravuraâs position as a leading application provider for Wrap accounts.â
Mr Jon Newbery, Chief Executive Officer of Powerlan, said: âOver the past few years we have built Garradin into a successful business, and we believe its acquisition by Bravura is the next step in taking Garradinâs distinct offering to a wider market.
âThe deal with Bravura has the full support of Powerlanâs board. It provides further value to our shareholders and is in the best long-term interests of our clients and employees. The sale also enables management to continue to focus on the Clarity Next Generation OSS business and provide further support to ConverterTechnology and IMX.
âThis agreement is further proof of Powerlanâs capacity to develop emerging businesses for the benefit of our shareholders, as we did with FinancialBPO, which we nurtured and subsequently sold in 2005 to Computershare. Further acquisitions will be considered in line with the ongoing strategic direction of the Group.â
Bravuraâs acquisition is subject to further due diligence and is expected to be completed in late June 2007. It will be earnings accretive for fiscal year 2008.
The merger builds on the seven acquisitions Bravura has already made since establishment in 2004, including the purchases of The Bank of New Yorkâs Rufus Software Business and Luxembourg-based AB Prodata in December last year.