Bravura Solutions emerged from a trading hiatus early Thursday to announce a capital raise aimed at improving balance sheet flexibility and providing additional capacity to invest in growth opportunities, including the proposed GBST acquisition.
On April 12, 2019, Bravura submitted a non-binding indicative proposal to acquire all of the shares of GBST Holdings.
“While there is no certainty that the GBST Indicative Proposal will result in a transaction, the GBST Indicative Proposal is expected to create synergies and value creation opportunities for clients (subject to due diligence) and, based on consensus expectations, it is expected to be EPS accretive. during the first full year of ownership (excluding integration/transaction fees),» the company said.
“Shareholders should note that GBST’s indicative proposal remains subject to several conditions precedent, including (but not limited to): completion of due diligence to the satisfaction of Bravura, unanimous support and recommendation of the board of administration of GBST, receipt of regulatory approvals and execution. of a program implementation agreement on the terms and conditions customary for a transaction of this nature and reflecting the results of due diligence.
In 1H19, Bravura reported revenue growth of 24 percent, EBITDA growth of 28 percent and NPAT growth of 15 percent. Wealth management revenue increased 24 percent and EBITDA increased 36 percent in 1H19, following two new Sonata contracts, expanding project work and increasing demand from existing clients.
Fund administration revenue also increased by 23 per cent in 1H19, benefiting from increased implementation and development work arising from a renewed and enhanced contract with a major global client.
The ASX-listed company confirmed it is actively exploring a number of growth opportunities, including acquisitions and product feature enhancements to support expansion into existing and new geographies and markets.
“These include a number of adjacent geographic markets that currently exhibit (or are likely to exhibit in the near term) similar characteristics to those in which Bravura currently operates, such as an increasingly financial services economy. more sophisticated, more complex financial products and increasingly complex financial services regulation,” the company said.
“These opportunities can be exploited through acquisitions, development co-financing with an existing customer wishing to enter a new geographic area and/or market, or through additional R&D spending (on a market-by-market basis), or by any combination of these elements. »
