NZX sells Link Market Services, buys Apteryx

[NZX] has sold its 50% stake in share registry provider Link Market Services NZ and will direct its investment elsewhere.

NZX, New Zealand's only licensed stockmarket operator, has sold its stake to Link Market Services of Australia, a member of the Link Group, ending a 10-year joint venture partnership.

The sale has netted NZX an initial payment of $13.8 million, with $450,000 to be paid to NZX in 12 months’ time depending on Link NZ’s financial performance over that period.

NZX chief executive Tim Bennett says the sale of Link NZ, which has 12 of the S&P/NZX 20 issuers as clients, came at an appropriate time.

“NZX is committed to investing in and growing areas of the capital markets that are undeveloped and where we see value, with the benefits accruing to both the market and our shareholders. This was the case in share registry services when we invested in Link NZ 10 years ago.

“The sale of our stake in Link NZ ensures NZX is now well positioned to take advantage of other opportunities to invest in the development of New Zealand’s markets infrastructure – this potentially includes NZClear, which is currently being divested by the Reserve Bank.”

Link Group managing director John McMurtrie says Link NZ will be developed and fund services will also be launched.

The transaction will be effective on June 30, with no changes to staff or the services Link provides to clients.

NZX also announced it has entered into a non-binding heads of agreement to acquire 100% of financial management software company Apteryx, which helps New Zealand investment advisers and providers manage, trade and administer clients’ portfolios. 

The company, formerly called Amadeus Asset Management, was co-founded in 2006 by New Zealand Assets Management and software designer Chris Rutter (who remains executive director), and headed by former ASB Bank wealth products manager Paul Baldwin. 

NZX says it will not disclose the purchase price, and does not expect the business will have a material impact on earnings in 2015 or 2016. 

As at March 31, 2015, Apteryx had annual revenues of about $1.2 million and more than $1 billion of funds administered on the platform.