Iress offloads QuantHouse

ASX-listed Iress is divesting its market data business QuantHouse for €17.5 million ($31.4m) at a 45% discount to what it acquired it for in 2019.

BAHA Tech Holding AG is set to take over Iress' European market data and trading infrastructure business under a binding share sale and purchase agreement.

Iress paid €38.9 million ($69.3m) for QuantHouse, which provides 145 data feeds from exchanges and other data providers to clients in North America, Europe and Asia.

As part of the transaction, Iress agreed to a five-year supply agreement with BAHA to provide existing QuantHouse market data feeds into Iress' software.

Iress said the decision to divest the QuantHouse business follows a strategic review conducted as part of its transformation program.

"The review determined that Iress was not the natural owner of QuantHouse, and it would perform better under renewed ownership with the capacity and intent to invest in delivering specialist market data offerings at scale to global clients. Iress will retain its traditional market data offering as part of its trading and market data business," Iress said.

The transaction is expected to complete by the end of the year. Following completion, Iress said it will continue to provide certain services for a period of up to 12 months to assist in the transition to BAHA's ownership.

Privately owned, Vienna-based BAHA provides market data, financial news, technology and solutions for the financial services industry covering more than 12 million financial instruments.

Iress Group chief executive Marcus Price said: "With our transformation program now complete, Iress is focused on strengthening and growing our core business operations in wealth and trading and market data. While QuantHouse has been a valuable part of our business, we recognise its future potential will be best realised with an owner committed to investing in its global expansion."

Iress made $88.7 million in statutory NPAT for the 2024 financial year, marking a $226.2 million turnaround from the previous year's loss.