The board of wrap platform Transact is considering acquiring Object Mastery, the Australian firm that developed its platform software, Money Marketing can reveal.
Object Mastery, founded in 1992 and based in Melbourne, is owned by Michael Howard, who holds a 29 per cent stake in Transact.
Transact chief executive Ian Taylor says: “I can confirm the issue of acquisition of the software company was discussed at the last shareholder meeting and is being considered by the board.”
Taylor says a potential purchase is “not necessarily linked” to Transact’s plans to float on the London Stock Exchange.
Early in 2015 Transact said it was considering an initial public offering with Taylor writing to shareholders saying an IPO was the most “appropriate” exit strategy for the business.
This followed an unsuccessful sale attempt in 2014. At that time private equity firms were said to be circling the business but talks fell through.
Transact’s assets under administration at 30 March were £21.15bn and the platform has just over 130,000 customers.
Platforum senior researcher Miranda Seath comments: “We see Transact’s play to acquire Object Mastery as a sensible strategic move. Object Mastery has expertise in many of the areas where Transact needs to upgrade some of its ageing proprietary technology.
“An acquisition strengthens Transact’s play of better serving its clearly defined and loyal community of advisers. Although some in the industry may speculate, we don’t see this as a move by Transact to develop an e-commerce capability.”