Financial Services technology company, FinClear Holdings Ltd (FinClear) has entered into an agreement to acquire Bank of New York Mellon-owned Pershing Securities Australia Pty Ltd (Pershing Australia). The acquisition, by way of a share purchase agreement, is subject to customary conditions and is expected to complete early in the second half of calendar 2021.
FinClear, an independent, Australian owned and developed technology and financial services business, specialises in providing trading, execution, clearing and technology solutions to wholesale intermediaries seeking ASX market access. The acquisition of Pershing Australia will enable FinClear to expand its service offering to larger stockbrokers, a key target market within its already diverse client base that includes financial planners, stockbrokers and wealth managers, wealth platforms, FinTechs and large institutional clients such as Commonwealth Bank and Macquarie Bank.
FinClear CEO, David Ferrall, says the acquisition of Pershing Australia will bring increased breadth and scale to FinClear’s business. “We have the capital, the systems, technology and the expertise to integrate Pershing Australia clients into FinClear’s operations – a process that will be managed in a staged, incremental, highly secure manner over an appropriate period of time.
“As an existing client of FinClear we are familiar with Pershing Australia and enjoy a strong relationship. We are confident that combining Pershing Australia with our vertically integrated service and technology capability will provide Pershing Australia’s clients with an enhanced service offering and provide a platform for future growth.
“FinClear’s platform has been specifically designed for the Australian market and provides it with a significant competitive advantage. FinClear is looking forward to providing Pershing Australia’s clients increased operating efficiencies and access to FinClear’s technology suite.”
FinClear’s capital position following the acquisition is strong, supported by the $20 million raised from the Magellan Financial Group when it joined the share register as a strategic investor at the end of October 2020.
“The integration of Pershing Australia will strengthen the foundation of our business by providing the increased scale needed to develop the next-generation of HIN based platform services, establishing FinClear as the clear market leader. Our combined HIN platform will service in excess of $120 billion in listed securities.” Mr Ferrall added.