The Office for Fair Trading has approved Iress’ acquisition of Avelo following a competition review.
The OFT announced in November it would be conducting a review to examine whether the acquisition created a ‘substantial lessening of competition’.
The full text of the review has not yet been published but the OFT has confirmed the £210m deal announced in August has been given the go-ahead.
In a statement on the Australian stock market today Iress says: “Consistent with the view maintained by Iress, the OFT has confirmed it does not consider the acquisition gives rise to any substantive competition concerns and that it will not engage in further investigation of the matter. This brings to a close the OFT’s investigation.”
In January the OFT’s competition commission ruled that Iress could not make significant changes to the business until the completion of the review. It included altering the Trigold brand or changing key Avelo staff. Those restrictions are now lifted.
Finance and Technology Research Centre director Ian McKenna says: “This is good news for advisers and cosumers. There is a need for technology suppliers with the ability to provide scalable solutions through multi-million pound projects which advisers themselves would not have the resources to do.”