Praemium Limited (ASX:PPS) Announces Update on OneVue Earn Out
Earn Out Details
Praemium Limited has issued an earn out statement to Iress Limited, stating that no payment is owed for the first earn out period due to funds under administration (FUA) on the OneVue platform falling below the $3 billion threshold.
Executive Comments
Chief Executive Officer Anthony Wamsteker commented, “Praemium has reviewed OneVue’s service offerings and pricing. In certain instances, a revision to terms and conditions was sought to ensure the relationship was commercially sustainable. Where agreement was unable to be reached with the IOPB client, termination of those arrangements has been agreed and these transitions are expected to be completed prior to 15 October 2025”.
Mr Wamsteker also added, “We remain committed to mid-teens earnings accretion and at least $3 million in synergies arising from the Transaction. The agreed terminations are not currently expected to have a material impact on underlying earnings expectations”.
Financial Impact
The nil earn out amount for the first period will be disclosed in Praemium’s half-year accounts for FY25 as an after reporting date event, with no impact on profitability. The estimated earn out for the second period is under consideration and will be recognised in the half-year accounts for FY25 as contingent consideration under AASB 3.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Praemium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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