Iress has been successful in acquiring Onevue Holdings ((OVH)) for $115m – subject to court approval on October 28.
Morgans sees strategic merit in the acquisition over the long term, with the opportunity to integrate Xplan (front end planning software) with investment execution (platform services) and registry services. However. it’s considered heightened investment may be required.
The company will fund the acquisition via existing cash and debt facilities. The broker details Onevue had net cash of $8.5m as at June 20.
The rating of Hold is unchanged. The target price is decreased to $11.70 from $12.05.
Sector: Software & Services.
Target price is $11.70.Current Price is $9.95. Difference: $1.75 – (brackets indicate current price is over target). If IRE meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
