Acquisition of Leading Australian Mortgage Qualification Provider, TransActive Systems.
TransActive Principal Retained.
IRESS announced today the acquisition of TransActive Systems by its wealth management software division for $1.9 million. This acquisition further expands the suite of products and services available through IRESS’ wealth management operations, by adding the leading provider of mortgage analytics to its existing strengths in:
- portfolio management
- CRM
- practice management
- investment modelling
- risk (life insurance) research
- electronic applications.
TransActive is the leading provider of mortgage qualification analytics in the Australian market. With its web based offering, and its client base which is wholly in mortgage broking networks, TransActive is complementary to IRESS’ financial planning client base. TransActive’s services include:
- CRM
- lead management and reporting
- debt analytics
- mortgage qualification across over 40 lenders.
Andrew Walsh, General Manager of IRESS Wealth Management said “We have observed a change in the way financial planners interact with mortgage brokers to service debt needs of their clients. This has evolved from referrals by planners to external mortgage brokers; to closer joint venture arrangements between advisers and mortgage brokers; to now where some advice firms are incorporating mortgage specialty arms inside their practices.”
“The advice trend we observe, the prospect of regulated advice on mortgage products such as in the UK, and the positioning of planners to incorporate debt advice within the lifestyle planning and cashflow analysis already performed by them, are drivers for best-of-breed mortgage qualification in our adviser desktop tools, Xplan and VisiPlan. Our integration will deliver the first fully-featured mortgage qualification tool in Australian financial planning software, and those financial planning groups already strong in crossadvising of mortgages and risk products will be the first to benefit from efficiencies”, said Walsh.
Work has already commenced to fully integrate TransActive’s mortgage qualification functionality into the Xplan and VisiPlan suite of products, and should be available as early as Q3 2008.
“Beyond this first phase of integration, future opportunities exist to extend our integrated mortgage qualification tool to clients in both New Zealand and South Africa, where the link between risk and mortgage advice is already very strong”, added Walsh.
TransActive will continue to focus and reinvest in its mortgage qualification, product expertise, and its solutions for mortgage broking networks. It will also be an important connection with broking networks seeking best-of-breed functionality from our wealth management suite, such as risk analytics and research.
This acquisition again confirms IRESS’ position as the leading independent provider of wealth management software, and its ongoing commitment to development, innovation, and expanded offerings to support emerging industry trends and client initiatives.
Financials
- Purchase price of $1.9 million
- Revenue approx $700,000 pa; 90% recurring
- No cost reductions given continuing focus on broker networks
- Basis for transaction is primarily strategic, but will not be dilutive in first year.
Highlights
- IRESS now offers the industry leading mortgage solution
- Expands presence in adjacent intermediary segment
- Demand for integrated mortgage analytics in adviser desktop solutions from existing clients
- Potential to provide risk and other solutions to TransActive customers
- Highly competitive joint offering to compete for new clients
- Applicable to New Zealand and South African user base.
For further information please contact:
Peter Dunai, Managing Director
Telephone: 03 9018 5800
Andrew Walsh, General Manager – Wealth Management
Telephone: 02 8273 7000