Private equity giant Blackstone is considering buying financial services technology company Iress for more than A$10 per share, according to the Australian Financial Review newspaper (AFR).
The AFR reported on Friday that Iress (ASX:IRE) was negotiating with Blackstone over a buyout that values it at A$1.9 billion (US$2.9 billion).
This is a 21% premium to the market capitalisation implied by the closing price on Thursday of $8.38, which was up 10 cents (1.21%) on the day.
Citing people briefed on the matter who requested anonymity as they were not permitted to speak publicly in its story, the AFR also reported that another American private equity firm Thoma Bravo had expressed interest in Iress.
Iress, Blackstone and Thoma Bravo were approached for comment but had not responded at the time of writing.
Thoma Bravo is a software-focused investor with about US$184 billion in assets under management.
In a research note on 24 February, broker E&P Capital was ‘positive’ about Iress and valued the company at $11.35 per share, implying a market value for the company of $2.12 billion.
Iress provides trading, wealth management, financial data and mortgage technology software and services to the financial services industry, including financial advisers, stockbrokers, wealth managers, banks and other financial institutions.
The company is scheduled to report its full-year results for the year to 30 June on Monday.
Blackstone is the world’s largest alternative asset manager with more than US$1 trillion in assets.
