Negotiations between private equity firm EQT Fund Management and Melbourne-headquartered fintech business Iress have ended.
On 10 August 2021, Iress shareholders backed a third confidential, non-binding and indicative bid from EQT.
The proposal was a revised implied value of A$15.91 per share. The deal equated to an equity value of A$3.1bn and an enterprise value of A$3.2bn (£1.68bn, $2.3bn, €1.96bn).
But on 17 September 2021, Iress said in an Australian Stock Exchange statement that discussions between the two firms had “concluded” and that the parties were unable “to agree a transaction”.
As a result, the process deed, incorporating exclusivity terms, between Iress and EQT was terminated.
Accelerate growth
Roger Sharp, chair of Iress, said: “In our 11 August announcement, Iress advised shareholders that there was no certainty the indicative proposal would result in a binding or formal offer from EQT.
“Nevertheless, the board took the view that it was in the best interests of shareholders to engage further with EQT in relation to the indicative proposal.
“The announcement today in no way impacts our strategy to accelerate growth and returns to shareholders, as detailed in our announcement of 29 July 2021 and presented at our investor strategy day.
“Our aim has been and remains, to double net profit after tax by 2025, with potential for further upside.
“We have built solid foundations to capture more market share in large addressable markets and are focused on executing the plan. With our strong operating businesses, favourable industry trends and growth investments, we have a positive outlook.”
Iress intends commencing its on-market share buy-back, as previously announced to ASX on 29 July 2021.
