InfoComp UK, the market-leading provider of Wrap technology, has announced that its Australian parent company, InfoComp and GBST Holdings Limited have entered into an agreement to combine the two organisations.
The business of both companies is complementary. GBST (Global Banking and Securities Transactions) is the largest provider of securities transaction processing in Australia and a leading provider of transaction solutions for the Australian financial services industry. The Company also has clients in Hong Kong.
InfoComp is Australia’s leading provider of funds administration and registry software, facilitating the administration of in excess of Aus $200 billion funds under management for the Australian wealth management industry. It is the dominant provider to Australian wrap and master trusts, its products including the Composer, Conductor and Unison brands.
The new combined Group has some 250 staff operating out of Brisbane, Sydney, Wollongong, Melbourne, Adelaide and London.
The transaction, in which Australian Stock Exchange listed GBST acquires InfoComp for Aus$56 million, is to be funded through Aus$36.46 million in cash (from reserves and a new Aus$20 million debt facility). There will be an issue of approximately 4.95 million GBST shares to the vendors. The acquisition is expected to be finalised by 1 September 2007.
Stephen Lake, formerly CEO of GBST, assumes the role of CEO and Managing Director of the new Group.
Robert DeDominicis and Ray Tubman, the vendor shareholders, founders and key members of InfoComp are to join GBST as members of the Executive Team. They also retain their current positions and continue to develop the business of InfoComp.
This is a key acquisition for GBST extending its financial transaction services into wealth management, wrap and master trust administration. It also opens up growth opportunities for the enlarged Group in the UK market.
GBST Chief Executive Officer, Stephen Lake, said:
“We are excited by this acquisition, which is a major step in GBST’s strategy to diversify its services to the financial services industry. InfoComp is a great business and the companies are a good cultural fit providing a substantial new platform for growth and a beachhead into the UK market.
“The InfoComp business has been profitable since inception, with long term customer contracts and a strong record of repeat business. Also significant wealth management growth opportunities exist in the UK, where InfoComp has sold its flagship Composer wealth management and funds management system to one of the UK’s largest banks - and the growth prospects for the business are very strong.”
Robert DeDominicis, CEO Wealth Management Services said; “We believe that this transaction will provide sound, long term benefits for all our customers, shareholders and employees. The new Group will continue to operate as two separate business areas - Broker Services and Wealth Management Services, so we do not anticipate any disruption to client relationships, either from a contractual or an operational point of view. Existing account management arrangements remain the same and as far as day to day operations are concerned, it is a case of ‘business as usual’."
InfoComp represents a strong fit and is an important step in GBST’s strategy to broaden its technology platform for the financial services sector and will complement its broker services business.”
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