is set to divest its international operations to US financial firm Morningstar for $65.1 million after saying "no" to Netwealth.
The investment advice company said the deal will allow Praemium to focus on the Australian platform market and unlock capital.
“While enjoying strong sales momentum and technology leadership, the International Business has been operating at a scale disadvantage to its key competitors. Morningstar will bring its global footprint and investment scale to better serve the interests of international clients and better advance the career opportunities of our international employees,” said Praemium CEO Anthony Wamsteker
“Importantly, this sale will allow Praemium to focus its financial and leadership resources on the enormous opportunity in the Australian platform market. It is a significant milestone in our journey to becoming one of Australia’s largest independent specialist platform providers."
Subject to relevant approvals, the transaction is expected to complete in the second or third quarter of 2022. Following completion, the Praemium board intends to return surplus net proceeds to its shareholders.
Shares in Praemium (ASX:PPS)
are trading 3.2 per cent higher at $1.46.