20 January 2011
Australian financial markets software provider IRESS Market Technology is to expand its activities in South Africa through the acquisition of local financial software solution provider Peresys for approximately R375-million.
Peresys has an established client base in South African financial markets, and enjoys a dominant position in order execution and financial information exchange-based routing across all asset classes.
IRESS, which provides online and desktop solutions for both financial markets users and wealth management tools for financial professionals, already has a presence in South Africa through its head office in Durban, as well as offices in Johannesburg and Cape Town.
“For some time, IRESS has assessed the opportunity and timing to expand our presence in South Africa from wealth management and introduce our financial market services such as order execution, trading, and market data,” IRESS managing director Andrew Walsh said in a statement this week.
“The combined IRESS and Peresys service offering is anticipated to grow revenues while leveraging the largely fixed cost base.”
Extensive product range
Peresys will immediately establish IRESS’ financial markets division in South Africa, building on its existing wealth management presence that together forms significant scale and an extensive product range in South Africa.
According to the statement, IRESS believes in the advantages that come with scale both for its own operations, and to the benefit of its clients through product opportunities and investment in initiatives.
“Peresys is the clear industry leader in South Africa, which IRESS has held in high regard for some time for its client base, breadth of product, dedication to support and innovation, and positioning,” said Walsh.
‘Integral part’ of SA financial markets
According to the statement, the combined company’s initial focus will be on immediate product opportunities based around introducing IRESS components, specifically retail online trading, portfolio management, and market data.
Peresys CEO Ashley Mendelowitz said the transaction was an exciting opportunity for Peresys and its customers, who could look forward to having access to an expanded product offering from IRESS.
“We will continue to do the things that have made us an integral part of the South African financial markets over the past decade, including retaining the same values and our strong focus on domestic requirements, innovations and local support, ultimately ensuring that Peresys remains the material connection point for the international trading community to South Africa and, in time, the rest of Africa,” Mendelowitz said.
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