08/23/2019 | Press release | Distributed by Public on 08/22/2019 17:15
Bravura Solutions Limited (ASX:BVS) (Bravura) has today announced that it has entered into an agreement to acquire Midwinter Financial Services (Midwinter). Midwinter's financial planning software, AdviceOS, powers back office administration for financial advisers and drives online self-directed digital advice portals for superannuation funds in Australia. The total consideration for the acquisition is A$50m and will be funded by cash.
Midwinter's cloud-based SaaS offering is built using advanced technology and complements Bravura's product suite in an adjacent and attractive growth market. AdviceOS, Midwinter's core product, is a natural extension to Bravura's existing software solutions and client base, sitting alongside retirement savings, investments and life insurance.
The Australian financial planning market operates in a highly regulated environment with the industry under increased compliance obligations post Royal Commission. Traditional financial advice delivery is expensive to produce, carries a significant compliance burden and material reputational risks for regulatory transgressions. Combined with a high degree of Australians with unmet financial advice needs, there is significant potential for a differentiated technology-based solution to support traditional advice delivery methods, compliance obligations and self-directed digital advice delivery methods.
Commenting on the acquisition, Mr. Klim, Chief Executive Officer said:
'The Midwinter team have built a strong, highly functional and well-regarded cloud-based SaaS application for the financial advice market. The acquisition has a strong fit with our mission to provide best-in-class software solutions that comprehensively satisfy our clients requirements and help them navigate complex regulatory environments. Midwinter's modern technology offering complements and extends Bravura's broad suite of products in both Australia and internationally.'
The transaction is expected to be completed in August 2019 upon satisfaction of certain customary conditions precedent as well as key personnel arrangements. The founders and senior management of Midwinter are expected to remain a core part of the business.
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