Global Banking and Securities Transactions Holdings has bought Australian technology firm InfoComp for £23.6m.
The two companies will combine and the acquisition by the Australian Stock Exchange listed company will be funded out of cash from reserves and a AUS£8.4m debt facility.
GBST is the largest provider of securities transaction processing in Australia, supplying its financial services industry.
The new combined group has 250 staff operating out of Brisbane, Sydney, Wollongong, Melbourne, Adelaide and London.
Around 4.95m GBST shares will be issued to the vendors.
The acquisition is expected to be finalised by September 1, 2007.
Former GBST chief executive Stephen Lake will assume the role of chief executive and managing director of the new group.
Robert DeDominicis and Ray Tubman, the vendor shareholders, founders and key members of InfoComp will join GBST’s executive team and will retain their current positions and continue to develop the business of InfoComp.
Lake says: “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.
“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.”
Wealth Management Services chief executive Robert DeDominicis says: “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’.”