Australian wealth management software provider Iress expects to invest £10m in the next three years establishing a presence in the UK and rolling out software Xplan to Sesame members.
Earlier this month, Sesame signed a strategic partnership with Iress which will see Sesame advisers use the Iress front, middle and back-office software programme Xplan from late 2012.
But the licence fees agreed with Sesame will not be enough to cover the operational costs of the Iress UK set-up.
A note on the Iress website says: “During the initial years of the rollout phase, the licence fee revenue from Sesame will be insufficient to offset operational expenses as Iress focuses on establishing its presence in the UK. Iress’ net EBITDA funding req-uirement during the establishment phase will be fully expen-sed and limited to $5m a year subject to regular review.”
Iress group chief executive Andrew Walsh says he expects the roll-out to take up to three years. He says: “At the moment, we are limiting it to $5m a year but we will continue to assess it. If things go well, we have no problem with growing that investment in the medium term.
“We are focused on delivering to Sesame in our first year in the UK, that is our primary goal. We expect after the roll-out in 2012 that other opportunities will arise with other groups in the UK market.”
The UK arm of Iress will be managed by consultancy firm AT8’s three former directors Mark Loosmore, Mark Thelwell and Nigel Smith, who will be responsible for the delivery of the Sesame service and UK growth. AT8 has now closed to new business.