Iress raising $170m to fund $107m acquisition of OneVue

Financial software provider Iress (ASX:IRE) is going cap in hand to investors to raise $170 million to fund the $107 million takeover of OneVue.

Iress will raise $150 million through an institutional placement and $20 million though a share purchase plan.

New shares will be issued at $10.42, a 7 per cent discount to the last closing price of $11.21.

The capital raise will help lower the company's net debt to profit to 0.92 times after the acqusition of OneVue. Funds will also be used to respond to opportunities in the current environoment.

OneVue provides software for the administration of managed funds, superannuation and investment.

It operates the largest single third-party fund registry in Australia with approximately $490 billion in assets across 1,383 funds.

The OneVue board has unanimously recommended the offer.

Shares in Iress (ASX:IRE) are in a trading Halt – Last traded at $11.21.

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Source: Finance News Network