Platform provider puts international business up for sale

In a statement, Praemium said it had finalised the review of its international arm that had concluded divestment through a formal sale process was the best course of action.

“The proposed divestment will allow Praemium to focus its financial and leadership resources on further accelerating its growth trajectory in the Australian platform market for the benefit of all shareholders,” the group said.

Praemium added that the strategic review of the international business had highlighted its quality leadership and strong sales and revenue momentum.

“However in a marketplace undergoing significant structural change and consolidation, the business remains at a scale disadvantage to its key competitors,” the platform provider said.

“As a result, the Praemium board believes an alternative owner of the business will simplify the group, better serving the interests of its clients and better advancing the career opportunities of its employees.”

Praemium said Deloitte Corporate Finance had been appointed to manage the sale process and that it had already received interest from potential buyers.

“However the Praemium board notes that there is no certainty around whether the sale process will result in a binding transaction or whether there will be a decision or recommendation by the Praemium board to pursue any transactions,” it said.