- Iress (IRE) has terminated its process deed with Luxembourg’s EQT Fund Management after the parties were unable to reach an agreement
- The companies extended their exclusive talks by 10 days earlier this month, in an effort to arrive at terms for Iress’s proposed divestment
- IRE Chair Rodger Sharp says the outcome will not impact shareholders
- The company will pursue its on-market share buy-back announced earlier
- Iress shares closed down 10.4 per cent at $12.12 on September 17
Iress (IRE) has terminated its process deed with Luxembourg’s EQT Fund Management after the parties were unable to come to an agreement.
Earlier this month the companies extended their exclusive discussions by 10 days in an effort to arrive at terms for Iress’s proposed buyout by EQT.
After the companies were unable to arrive at an agreement, IRE Chair Roger Sharp said the company remained strong in its aim to double net profit after tax by 2025, with potential future upside.
“The announcement today in no way impacts our strategy to accelerate growth and returns to shareholders,” he said.
“We have built solid foundations to capture more market share in large addressable markets and are focused on executing the plan.”
EQT Asia Pacific Chairman Thomas Von Koch also weighed in on the decision to walk away.
“During our work we have been able to confirm that Iress is an impressive, technology-focused business with strong market share and a very loyal customer base driven by its market-leading software solutions,” Mr Von Koch said.
“We have not come across any red flags during our due diligence but were not able to sufficiently confirm our investment hypothesis.”
In light of the announcement, Iress confirmed that its guidance for segment profit, in constant currency, hovered between $164 million and $168 million for the 2021 financial year.
The company anticipates one-off non-operating costs of between $4 million and $5 million in relation to the transaction.
Meanwhile, it will pursue an on-market share buy-back as announced on July 29.
Iress shares closed down 10.4 per cent at $12.12 on September 17.