Praemium International’s parent, the eponymous Melbourne-based independent proprietary tech platform, earlier today announced to the Australian Securities Exchange (ASX) that following a strategic review it will be seeking a buyer for its operations in the UK, Jersey, Dubai and Hong Kong (the Business).
The Australian company intends to focus its attention on its home market and is therefore looking for a buyer for its international operations, which include the fast-growing platform servicing the UK and International markets, Praemium International, and CRM systems, Wealthcraft and Plum.
Praemium’s international business has had a hugely successful few years which has seen it become one of the fastest-growing platforms in the UK and achieve consistently high customer satisfaction scores in independent industry surveys.
The strategic review of the Business, which the Board initiated in May 2021 highlighted the “strong sales and revenue momentum that the Business is currently enjoying”. It also noted, however, that “in a marketplace undergoing significant structural change and consolidation, the Business remains at a scale disadvantage to its key competitors” and that the interests of its clients and employees would be better served by an “alternative owner”.
Commenting on the news, Managing Director of Praemium UK & international business, Mark Sanderson said: “The Group Board recognises and is rightly very proud of the international team’s achievements to date. It can see the clear potential for capitalising on the international business’s strong growth over the last couple of years. However, it also recognises that realising that impressive potential requires a parent focussed on the markets in which the international business operates.
We have not formally begun a sale process yet, however, since announcing our strategic review back in May, we have received a great deal of interest from a diverse range of parties. Hardly surprising when you look at our recent growth trajectory and consistently high service and satisfaction rankings in independent surveys. That said, the fit and focus of any potential new owners have to be right for us and right for our clients. Deloitte Corporate Finance has therefore been appointed to manage the sale process and we will keep our clients and partners informed as to the progress of that.”