Fund administrator MainstreamBPO announced it will acquire a portion of IRESS' superannuation administration business.
IRESS has agreed to divest its superannuation administration business for customer-owned banks and deploy 14 super fund clients to MainstreamBPO subsidiary SuperBPO.
The clients, which include seven retirement savings accounts and a public offer retail fund for customer-owned banks, have a combined funds under administration of about $650 million. MainstreamBPO will pay $3.5 million inclusive of purchase price, and various legal and transaction fees.
In October last year, IRESS acquired superannuation software firm Financial Synergy for about $90 million, but IRESS said providing administration services to customer-owned banks is not in line with company's future growth plans.
IRESS said the sale is not material and does not impact any other part of its business. It expects the transaction will be finalised in October.
MainstreamBPO chief executive Martin Smith commented the acquisition is a good strategic fit, adding scale to the existing super fund business and will enable access to new clients through a trustee platform.
IRESS chief executive Andrew Walsh added: "MainstreamBPO has been a client of IRESS for many years, using our technology solutions to administer individually managed accounts, wholesale mandates and superannuation administration. This capability positions MainstreamBPO well to meet the current and future superannuation needs of these customer-owned bank clients."
MainstreamBPO administers to 631 funds with about $114 billion in funds under management.