Financial software provider Iress Limited (ASX: IRE) has flatly rejected media reports claiming the company is in advanced takeover talks with private equity giant Blackstone.
The denial came after Iress shares surged 15% on Monday, jumping from $9.04 to $10.38 following a report by The Australian newspaper.
The Melbourne-based company said there was “no basis” to statements made about potential price and exclusivity terms relating to a potential acquirer. The firm entered a trading halt late Monday to manage its continuous disclosure obligations.
What Iress Actually Said
In its response to an ASX price query, Iress confirmed it was not aware of any information that could explain the sharp share price movement.
However, the company acknowledged The Australian’s report as a possible explanation for the market reaction.
Key points from Iress’s statement:
- No basis for claims about specific pricing or exclusivity terms
- Company continues to engage with multiple parties
- Discussions aim to determine if a proposal can be recommended by the board
- No certainty any offer will emerge from current talks
The clarification comes months after Iress first confirmed takeover interest from major U.S. private equity firms.
Iress is a technology company providing software to the financial services industry
A Long-Running Takeover Saga
This is not the first time acquisition rumours have swirled around the Australian fintech company.
In August 2025, Iress officially confirmed early-stage discussions with both Blackstone and Thoma Bravo. At that time, the company revealed Blackstone had previously approached with an offer of $10.50 cash per share.
That initial proposal valued Iress at approximately $1.94 billion but was subsequently withdrawn.
By October, Iress announced it had opened a virtual data room to engage with “new third parties” in addition to Blackstone and Thoma Bravo. The company has been carefully managing the process to explore whether a change of control transaction makes sense.
What’s at Stake
Iress provides enterprise software to wealth managers, financial advisers, brokers and mortgage lenders across Australia, the UK, South Africa and other markets.
The company has undergone significant transformation over the past two years, divesting several non-core businesses including:
- Managed fund administration business (sold to SS&C Technologies)
- Platform business (sold to Praemium)
- Superannuation business (sold to Apex Group)
Recent financial performance shows the company is on solid footing. For the half-year ending 30 June 2025:
- Continuing business revenue grew 6.8% to $249.4 million
- Statutory net profit remained steady at $17.3 million
- Adjusted EBITDA guidance reaffirmed at $127-135 million for full year
- Interim dividend of 11 cents per share declared
The streamlined operations have improved margins and positioned Iress as a more focused player in its core trading and wealth management segments.
Leadership Transition in Progress
Adding another layer to the story, Iress is in the midst of a CEO transition.
Former CEO Marcus Price stepped down in September after leading the company’s recent transformation strategy. Former Bravura Solutions CEO Andrew Russell is set to take over the leadership role in November 2025.
The timing of the takeover speculation has raised questions about whether the leadership change influenced the process.
Private Equity’s Appetite for ASX Tech
The interest in Iress reflects a broader trend of U.S. private equity firms targeting Australian software companies.
Recent comparable deals include:
- TPG Capital’s $651 million acquisition of Infomedia in August 2025
- Silver Lake’s takeover of Altium
- Vista Equity Partners’ interest in TechnologyOne
These transactions demonstrate growing appetite for mature Australian software businesses with recurring revenues and established market positions.
Iress fits this profile perfectly. The company has 94% recurring revenue, an 0.8x leverage ratio, and is investing heavily in AI and cloud technologies.
Market Reaction and Analyst Views
The 15% share price spike on Monday reflected immediate market excitement about potential takeover premium.
However, Iress shares remain well below the $10.50 per share that Blackstone previously offered. The stock’s 52-week range spans from $6.95 to $10.13.
Analysts have maintained cautious optimism. The consensus target price sits at $9.53, representing approximately 19% upside from recent levels.
Bell Potter and other research houses have pointed to Iress’s improved operational efficiency and UK market turnaround as positive catalysts.
History of Failed Deals
Iress has been down this road before.
In 2021, Swedish investment firm EQT made a $3 billion bid for the company. Despite several improved offers, EQT ultimately walked away without a deal.
The failed transaction left some investors wary about whether this time will be different.
Private equity interest typically indicates strong fundamentals and cash flow generation. But it also raises questions about whether existing shareholders will receive fair value in any potential transaction.
What Happens Next
Iress has confirmed discussions are in early stages with no certainty of outcome.
The board has emphasised it remains committed to acting in shareholders’ best interests and maximising value.
Key factors that will determine whether a deal emerges include:
- Agreement on valuation between Iress board and potential acquirers
- Regulatory approval considerations
- Competitive tension between multiple interested parties
- Assessment of standalone value versus takeover premium
The trading halt is expected to lift by the start of trading on 26 November 2025 or when the company makes a further announcement.
For now, shareholders are left waiting to see whether the months-long acquisition interest translates into a formal binding offer.
The Bottom Line
Iress finds itself in a delicate position. The company has successfully streamlined operations and improved profitability.
But takeover speculation creates uncertainty that can distract from business fundamentals.
Investors should watch for any formal proposals that emerge in coming weeks. Until then, the focus remains on Iress’s operational performance and new CEO Andrew Russell’s strategic vision for the transformed business.
The ASX technology sector has seen significant M&A activity in 2025, and Iress may well be the next chapter in that story.
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FAQs
Q: What is the current status of Iress takeover talks?
A: Iress is in early-stage discussions with multiple parties including Blackstone and Thoma Bravo, but no binding offer has been made. The company has denied specific media reports about pricing and exclusivity terms.
Q: What was Blackstone’s previous offer for Iress?
A: Blackstone previously offered $10.50 cash per share, which valued Iress at approximately $1.94 billion. That offer was subsequently withdrawn.
Q: Why did Iress shares jump 15% on Monday?
A: Shares surged following a media report claiming advanced takeover discussions, though Iress has since stated there was “no basis” for the specific claims made in the report.
Q: Who will be Iress’s new CEO?
A: Former Bravura Solutions CEO Andrew Russell is set to take over as CEO in November 2025, replacing Marcus Price who led the company’s recent transformation.
Q: Has Iress been a takeover target before?
A: Yes, Swedish investment firm EQT made a $3 billion bid in 2021, but the deal ultimately fell through despite improved offers.
