Link Group to acquire econveyancing platform PEXA for $1.5 billion via @eliteagentmag

Link Group and its partners, including Commonwealth Bank of Australia and Morgan Stanley Infrastructure, have announced their final bid for PEXA has been accepted.

Link, which already owns 30 per cent of PEXA, initially made a bid earlier in the year which was knocked back due to PEXA’s plans to list on the Australian Stock Exchange.

However, the company was unable to gain support for the IPO, which would have valued PEXA between $1.88 billion and $2.18 billion.

The bid from Link was officially signed by PEXA shareholders on Monday, having initially been lodged on 8 October and increased on 5 November.

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CBA will be investing $50 million into PEXA and increasing the equity stake in the business from 13.1 per cent to 16 per cent.

In an announcement on the ASX, CBA CEO Matt Comyn said, “Having been a key stakeholder in PEXA since its inception in 2011, today’s announcement represents our continued commitment to support the property industry as it transitions towards an innovative, fully digital, settlements process that aims to provide improved experiences for customers.”

Six investors have agreed to sell to the consortium, but it remains unclear if the major shareholders, Macquarie Capital and Namarong Investments, will sell. The Victorian government, which owns 7.5 per cent, is in caretaker mode due to the November 24 state election, but both the NSW and Queensland governments have opted to sell.

Shareholders have until Friday to decide if they will sell into the offer.

The additional input of funds from the deal will further enable PEXA’s growth in the econveyancing space, making it harder for rival platforms to challenge the leader.

The closest rival currently is Sympli which is currently seeking regulatory approval and is on track to be approved by the end of the year.

Source: Elite Group

The ASX is spending $30 million to break into the electronic property settlement market via @BIAus

The ASX is spending $30 million and leveraging its expertise in settlements to create an electronic property settlement service for lawyers, conveyancers and financial institutions.

The equities market operator has done a deal with Australian Technology Innovators Pty Limited (ATI), the parent company of InfoTrack, the eConveyancing technology and services group, to enter the national electronic property settlement market.

Sympli Australia Pty Ltd, owned 50/50 by ASX and ATI, has applied to become an Electronic Lodgment Network Operator with the regulator, the Australian Registrars’ National Electronic Conveyancing Council.

The partnership combines ASX’s expertise in secure, electronic financial market settlements and InfoTrack’s in property settlement technology and processes. Property settlement is still largely a paper-based process in Australia.

“Entering the electronic property settlement market is a natural evolution for ASX,” says Dominic Stevens, ASX Managing Director and CEO.

“We already settle approximately $70 billion in transactions electronically every day and have been the central settlement venue for the Australian financial market for decades. InfoTrack is the ideal partner as the market leader in legal and property search.

“It has 18 years’ experience and brings a deep understanding of, and connectivity to, the property conveyancing industry.”

Sympli will offer lawyers, conveyancers and financial institutions a more streamlined and comprehensive technology solution that will seamlessly integrate with clients’ existing practices and systems.

The ASX is also planning a blockchain platform by late 2020 or early 2021 to replace the CHESS system for clearing and settling transactions.

Here’s how the ASX sees the opportunity in property:

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The electronic property settlement industry in Australia is estimated to have potential revenues of more than $200 million. Sympli expects to begin operations towards the end of this calendar year.

The ASX expects to invest $30 million in the venture over this and the next two financial years, including $7 million in 2018. The ASX estimates Sympli will break-even in the 2021 financial year.

Source: Business Insider Australia