Dye & Durham to acquire Link Group in C$3.2 billion deal
Dye & Durham has announced an agreement to acquire Australian market-leading financial services software provider, Link Group, for an estimated C$3.2bn.
As part of the transaction, Dye & Durham will also indirectly acquire Link Group’s approximate 43% ownership stake in PEXA Group, responsible for Australia’s leading digital property exchange network.
Commenting on the acquisition Matthew Proud, CEO of Dye & Durham said:
“This is a transformational acquisition for Dye & Durham and represents a major step forward in our ‘Build to a Billion’ strategy to achieve C$1 billion of adjusted EBITDA
This transaction will enable us to expand our proven model into adjacent markets, where Link Group’s products share the same attributes of our existing offering: digital infrastructure-like assets that provide essential services to clients and their customers and generate stable and sustainable cash flows. Link Group has achieved critical mass across multiple product categories in Australia and the United Kingdom – two of our key markets – and this acquisition both diversifies and strengthens our position in these geographies.”
Following acquisition of Link Group, Dye & Durham’s revenue will be boosted by an additional A$1.2bn, and will gain 7000 new employees.
“One of the core attributes that that attracted us to Link Group is its commitment to innovation, which can be seen through Link Group’s significant investment in AI and analytics that has fueled its market growth to build new products and services. As customers increasingly demand technology-led solutions and the importance of data and automation continues to grow, this acquisition will broaden and strengthen our offering and enable us to deliver even greater value to our customers over the long term”, Proud added.
Vivek Bhatia, Link Group CEO commented:
“I am very excited to join the Dye & Durham team and believe this transaction represents an ideal outcome for our customers and employees. Together, we will leverage our collective experience in the financial services and real estate markets, where our large customer base complements and uses each others’ products.”
The news comes following the CMA’s announcement yesterday that Dye & Durham’s acquisition of TM Group has been referred for an in-depth investigation after it rejected proposals in which Dye & Durham addressed concerns over the “substantial lessening of competition within a market or markets in the United Kingdom”.