BRAVURA SOLUTIONS LIMITED. — M&A Activity 2019

Aug 22, 2019

ASX Release

23 August 2019

Bravura acquires cloud-based SaaS provider Midwinter

Key points

• Bravura to acquire Midwinter for A$50m.

• Midwinter’s award-winning financial planning software, AdviceOS, powers back office administration for financial advisers and drives online self-directed digital advice portals for superannuation funds in Australia.

• The acquisition is a strong strategic fit, with AdviceOS being a natural extension to Bravura's existing software solutions and client base and opens an important avenue for growth in Australia, the UK and other geographies in which Bravura currently operates.

• The acquisition is expected to be EPS accretive in the first year of ownership.

Bravura Solutions Limited (ASX:BVS) (Bravura) has today announced that it has entered into an agreement to acquire Midwinter Financial Services (Midwinter). Midwinter’s financial planning software, AdviceOS, powers back office administration for financial advisers and drives online self-directed digital advice portals for superannuation funds in Australia. The total consideration for the acquisition is A$50m and will be funded by cash.

Midwinter’s cloud-based SaaS offering is built using advanced technology and complements Bravura’s product suite in an adjacent and attractive growth market. AdviceOS, Midwinter’s core product, is a natural extension to Bravura's existing software solutions and client base, sitting alongside retirement savings, investments and life insurance.

The Australian financial planning market operates in a highly regulated environment with the industry under increased compliance obligations post Royal Commission. Traditional financial advice delivery is expensive to produce, carries a significant compliance burden and material reputational risks for regulatory transgressions. Combined with a high degree of Australians with unmet financial advice needs, there is significant potential for a differentiated technology-based solution to support traditional advice delivery methods, compliance obligations and self-directed digital advice delivery methods.

Commenting on the acquisition, Mr. Klim, Chief Executive Officer said:

“The Midwinter team have built a strong, highly functional and well-regarded cloud-based SaaS application for the financial advice market. The acquisition has a strong fit with our mission to provide best-in-class software solutions that comprehensively satisfy our clients requirements and help them navigate complex regulatory environments. Midwinter’s modern technology offering complements and extends Bravura’s broad suite of products in both Australia and internationally.”

The transaction is expected to be completed in August 2019 upon satisfaction of certain customary conditions precedent as well as key personnel arrangements. The founders and senior management of Midwinter are expected to remain a core part of the business.

– ENDS –

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For investor enquiries, please contact:

Rahul Badethalav

Head of Strategy, Marketing and Investor Relations T: +61 2 9018 7879

E: investors@bravurasolutions.com

About Bravura Solutions Limited

Bravura Solutions Limited is a leading provider of software solutions for the wealth management, life insurance, and funds administration industries. Our solutions are underpinned by functionally rich technology that enables modernisation, consolidation, and simplification. Backed by over 30 years of experience, our installed or managed hosted solutions are used by many of the world’s leading financial institutions. Our business comprises more than 350 direct and indirect blue-chip clients. In excess of A$2.8 trillion (£1.6 trillion) in assets are entrusted to our systems. We support our clients with a team of more than 1,300 people in 12 offices across Australia, New Zealand, United Kingdom, Europe, Africa, and Asia.

To learn more, visit www.bravurasolutions.com.

About Midwinter Financial Services

Founded in 2006, Midwinter provides financial planning software to financial advisers, superannuation funds, dealer groups and accountants. In 2013, Midwinter rebuilt their product and launched AdviceOS, a pure cloud platform that combines advice capabilities across multiple channels and advice types in one cloud-based application. Midwinter have also developed a compelling digital advice solution utilised by some of Australia’s largest super funds.

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