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Bravura (ASX:BVS) to buy UK Delta for $41.5 million

Bravura Solutions Ltd (ASX: BVS) has announced that it’s going buy UK-based Delta Financial Systems for $41.5 million.

What is Delta Financial Systems?

Delta is a UK software company that provides technology to power pension administration in the UK market. Bravura said that its products are highly regarded in supporting the administration of self-invested personal pensions (SIPPs) and small self-administered schemes (SSASs).

Delta’s technology systems currently supports more than 30 UK clients.

The UK company made £6 million of revenue in FY20 and it’s forecast to achieve revenue growth of 20% to 30% with margins similar to Bravura’s wealth management segment.

Why is Bravura buying Delta?

The acquisition price is £23 million, or $41.5 million in Australian dollar terms.

Management said that it will broaden Bravura’s product suite and is a natural extension of its core Sonata offering. It also offers the chance for Bravura to offer other products to Delta’s client base.

Bravura CEO Tony Klim said: “We are delighted that Delta is joining Bravura. Both businesses have complementary products that together, provide a compelling offering to support the mission-critical operations of wealth management firms in the UK.”

Summary

This seems like a smart bolt-on acquisition for Bravura. It’s good to expand internationally and diversify earnings, particularly with the Australian dollar at a strong point. The high margins also sound good.

Bravura is a promising business and it’s priced at a low level compared to the past couple of years. I think it could be an opportunistic buy. Other technology ASX growth shares could also be worth buying such as Pushpay Holdings Ltd (ASX: PPH).

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
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