Bank of New York Co. Inc. is selling Rufus, its European transfer agency software business, to Bravura Solutions Ltd., a financial technology company based in Sydney.
The deal, valued at up to $40.6 million, is expected to close in December and is subject to a vote by Bravura shareholders, Bank of New York said Thursday in a press release.
The Australian company said in its own release that Bank of New York signed a five-year licensing agreement to continue to use the Rufus software after the sale.
Kin Corning, Bank of New York Europe's chief operating officer, said in his company's release, "This transaction means that we can sharpen our focus on continuing to provide a high-quality transfer agency service to our clients across Europe, while continuing to benefit from the Rufus software platform."
Rufus is a multicurrency, multilingual application that tracks the accounts of investors in mutual funds, hedge funds, cash, and other investment vehicles. Bank of New York said it uses the software to support more than 75 clients, 1,500 funds, and 6 million investor accounts.
Bravura develops software for the pension, investment management, and life insurance industries.
Iain Dunstan, Bravura's managing director and chief executive officer, said in its press release, "This acquisition gives us scale in the U.K. market and access to software with features and functionality that can support a broad range of European fund structures."
