26 Jun 2015

NZX to buy online services company

2:18 pm on 26 June 2015

NZX says it is selling its 50 percent stake in Link Market Services, and has plans to reinvest in a digital services management company.

Link is New Zealand's leading provider of share registry services, and has been working in partnership with NZX for the past ten years.

Link would make an initial payment of $13.8 million to NZX, with an additional $450,000 to be paid in 12 months time, depending on Link NZ's financial performance over that period.

Chief executive of NZX Tim Bennett said Link was now well established in New Zealand and it was appropriate that it take full ownership of the business.

He said the sale meant NZX was in position to take advantage of other opportunities, such as the planned purchase of Apteryx.

Mr Bennett said NZX had entered into a non-binding agreement to buy Apteryx, which is a technology company focused on providing online services to investment companies, across a range of digital devices.

The purchase price was confidential, but NZX does not expect the business to have a material impact on earnings this year and next.

Mr Bennett said Apteryx had annual revenues of about $1.2 million in the year ended March, with more than $1 billion of funds administered on its platform.