Australian fund administrator MainstreamBPO has agreed to purchase a part of the superannuation administration business of local fintech firm IRESS for $3.5m.
The business acquired serves customer-owned banks and was bought by IRESS last year following its takeover of Financial Synergy, an Australian fund administration software provider to the superannuation and wealth management industries.
A total of 14 super fund clients will migrate to MainstreamBPO affiliate SuperBPO as part of the deal using MainstreamBPO’s “lift and shift” outsourcing model. These clients administer funds worth a combined $650m, and include a public offer retail fund for customer-owned banks as well as seven retirement savings account customers.
IRESS decided to offload these assets after recognising that they do not align with its future growth strategies.
The fintech provider also said that the sale, expected to close by early October 2017, will be immaterial to the firm and will not affect its other units.
MainstreamBPO CEO Martin Smith said: “This business acquisition is a good strategic fit for the MainstreamBPO group. It adds scale to our existing superannuation fund business and access to new clients through a trustee platform. We are pleased to extend our close working relationship with IRESS.”
MainstreamBPO expects the deal to positively affect its FY18 earnings.