PPS flat: We met with the PPS management team after they released 1H24 results this morning and announced the acquisition of OneVue from Iress (IRE). PPS bought this for a great price, $1m upfront and potential for $20m earnout, after IRE had paid $107m in 2020. They pick up $4bn of Funds Under Administration (FUA) assuming they can convert them onto the PPS tech stack, which will push PPS over the $50bn in FUA.
- The key to this business is scale which can drive operational leverage. This is an incrementally positive step towards scale, and we like the deal, although the rest of today’s result was underwhelming, costs remain an issue and there is still a lot of work to be done to take advantage of the strong market tailwinds.
MM is neutral PPS
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