Praemium’s OneVue earn-out ends
Platform business Praemium has moved beyond the earn-out arrangements related to its April, 2024, acquisition of the OneVue Platform Business (IOPB) from Iress.
The 2024 transaction included a potential earn out linked to retention and growth of funds under administration from IOPB clients, to be tested at two separate nine months intervals.
Praemium announced to the Australian Securities Exchange (ASX) on Friday that the second earn out period, completed as at 15 October, had resulted in nil being owed in the second ear out period.
It said this was because the retained Funds Under Administration in the second earn out period was less than the $3 billion threshold.
“The threshold was not exceeded due to outflows from existing IOPB clients since the date of acquisition, and due to existing IOPB clients terminating the contracts under which FUA was held on the OneVue platform,” the announcement said.
“Under the transaction terms, Iress is deemed to have accepted Praemium’s calculation of the second earn out amount and accordingly no further payments are due to Iress under the Transaction,” it said.
Commenting on the situation, Praemium chief executive, Anthony Wamsteker said his firm continued to believe Transaction will lead to around $3 million in annual EBITDA arising from synergies from the acquisition.
“The agreed terminations are not currently expected to have a material impact on underlying earnings expectations,” he said.
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