Bravura boosts software suite with $42m UK acquisition

Bravura boosts software suite with $42m UK acquisition

Fortune is favouring Bravura Solutions (ASX: BVS) today with shares up almost 8 per cent following the announcement of a UK acquisition for £23 million ($41.5 million).

The purchase of Delta Financial Systems will consolidate Bravura's already strong position in the UK market with its core Sonata offering, as well as British clients gained through last year's $25 million acquistion of FinoComp.

Providing technology to power complex pensions administration in the UK market with more than 30 clients, Delta is expected to generate 20-30 per cent growth on FY20 pro forma sales of £6 million ($10.8 million).

The Australian group also plans to offer a range of other products to Delta's client base.

Bravura notes Delta's margins are similar to its wealth management segment, which was under 30 per cent last year as the leading sourcing of profit for the Sydney-based company, followed closely by its funds administration division.

The Australian Software as a Service (SaaS) group has witnessed negative investor sentiment lately despite delivering results within guidance with a 22 per cent jump in NPAT to $40.1 million in FY20.

Of those profits, $3 million came from its acquisitions of FinoComp and cloud-based SaaS Midwinter, known for its AdviceOS financial planning solution. 

Today's announcement means Bravura will have spent more than $116 million on acquisitions over the past 14 months, provided the transaction is completed by the end of October as planned with all the regulatory approvals.

"We are delighted that Delta is joining Bravura. Both businesses have complementary products that together, provide a compelling offering to support the mission-critical operations of wealth management firms in the UK," says Bravura CEO Tony Klim.

Delta CEO and co-founder Michael Power describes Bravura as a leader in the UK wealth management marketplace, and believes Delta's products "sit perfectly alongside Bravura's offering".

"The Delta management team look forward to working together with Bravura to deliver outstanding service to both Bravura's clients and Delta's clients," says Power.

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