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US private equity group Advent International is acquiring Sydney-based investor administration and services platform Automic Group, a fast-growing company that supports more than 1,400 companies and funds across Australia and New Zealand.
Automic Group is being acquired from founding investors the ADBO Group among other shareholders that include Five V Capital and Automic team members with equity in the business.
Advent International, which is based in Boston and has about $US100 million in assets under management, will position Automic in its business and financial services portfolio where it already has about 95 investments in 25 countries.
Automic, which was founded in 2011 by Ben Kay who is still an executive of the group, operates a purpose-built, cloud-native technology platform that the company says has transformed investor services.
The platform is said to streamline and simplify shareholder management, fund administration, share plans, reporting and analytics for listed and unlisted companies, investment funds, wealth advisors and investors.
According to a blog posted last week by the company’s head of capital markets, Gearoid Neff, Automic Group has supported companies to raise more than $1.5 billion in IPO capital this year, including the recent $750 million float of lifestyle property developer GemLife Communities Group (ASX: GLF).
“This figure isn't just a corporate milestone; it's a barometer for the health and confidence of the entire market,” says Neff. “It speaks volumes about where we are and where we're heading.”
Last year, Automic Group finalised the $32 million acquisition of Advanced Share Registry, boosting its dominance in the sector as the largest registry provider in Australia.
Advent's buyout is expected to accelerate Automic’s growth strategy, including support for further investment in technology and artificial intelligence with plans for expansion into international markets.
“From day one, our big-picture vision was to become a major player in investor administration services in Australia and then look for global opportunities for the next phase of our growth,” says Automic Group’s executive chair Paul Williams.
“Partnering with Advent marks the next step in this journey. Our leadership team is fully committed to taking the business forward, and we are excited about the future for Automic Group.”
Automic’s registry division supports a broad corporate base, including ASX200 companies migrating to its technology platform. The company already supports about 1,200 companies across the ASX.
“Advent’s investment is an endorsement of Automic’s best-in-class technology platform,” says Automic Group CEO David Raper.
“Harnessing our proprietary technology, the strength of our dedicated team and our commitment to delivering innovative, client-focused solutions has underpinned our growth.
“I am confident that Advent will help us take the business to the next level.”
Founding partner of Five V Capital, Adrian MacKenzie, describes the investment in Automic as “an exciting journey” that started by backing a fast-growing technology business that is now “a key player within the investor administration sector”.
“We remain a customer of Automic and are excited to continue to follow Automic’s journey,” says MacKenzie.
Advent International was founded in the US in 1984 and currently supports 600 staff globally.
The private equity group controls investments in five core sectors - business and financial services, consumer, healthcare, industrial and technology. It has more than 50 investments in each of these sectors.
Financial details of the acquisition have not been disclosed, while the transaction remains subject to regulatory approvals.
Automic was advised by Goldman Sachs, Privatus Capital Partners and Gilbert + Tobin.
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