Advent set to acquire Automic Group to drive expansion plans

Advent has agreed to acquire Australian investor administration and services platform Automic Group.

Automic Group operates a cloud-based technology platform that handles shareholder management, fund administration, share plans, reporting and analytics for a wide range of clients including listed and unlisted companies, investment funds, wealth advisors and investors in Australia and New Zealand.

The business, which is being sold by the ADBO Group and other shareholders such as Five V Capital and certain Automic employees, supports more than 1,400 companies and funds across the region. Its technology is promoted as portable and scalable, allowing for future expansion into new markets. Automic also offers professional services alongside its technology platform.

Expansion

Automic's registry division works with a growing number of clients, including several ASX200 companies that have migrated to its platform. The company cites features such as cybersecurity, data redundancy and zero downtime, with ISO 27001 certification supporting its emphasis on information security.

The acquisition by Advent is intended to accelerate Automic's growth strategy, including additional investment in technological development, use of Artificial Intelligence, and international market expansion.

Leadership perspective

Automic Group Executive Chair Paul Williams highlighted the company's strategic direction and team commitment in a detailed statement addressing the transaction:

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. 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.From a warehouse in Alexandria almost 11 years ago, we have established the team and developed the platform that are revolutionising Investor Administration in Australia. Today, we are 260 people and support more than 1,400 companies and funds. Our success is entirely thanks to our team. It is your support, dedication, passion, and belief in our vision that has brought us to where we stand today. From day one, our vision was dominate in Australia and then become the global leader in Investor Administration, partnering with Advent marks the next step in this journey. For now, it is business as usual for us with continued focus on people, technology, and clients. The transaction is subject to customary regulatory approvals, and we anticipate this to be finalised before the end of the year. David and the leadership team will continue to lead the business, and post completion, I will remain a shareholder of the company for the long term. I want to take this opportunity to personally thank the Automic team, your hard work, support and commitment are the reasons why we've reached this milestone. I can't help but think back to the many people who said we would never get this business off the ground. Yet here we are, proving what belief, hard work, and great people operating as a team can achieve. I also reflect on those who were part of our journey but are no longer at Automic, many made significant contributions that helped shape the foundation of what Automic has become. I would like to thank these people as their impact remains part of our story. I am proud of what we've built and achieved together and I'm even more excited about the future for Automic. Our journey is continuing, and the opportunities for our company and each of you are now truly limitless.

Williams confirmed that it will be business as usual for clients and staff, with continuity in operations expected during and after the completion of the acquisition. He noted that David Raper and the existing leadership team will remain in place post-transaction and reiterated his own intention to stay on as a long-term shareholder.

Endorsement

David Raper, Automic Group Chief Executive Officer, described the deal as a vote of confidence for the company's technology and service model:

Advent's investment is an endorsement of Automic's best-in-class technology platform. 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.

Shareholder remarks

Adrian MacKenzie, Founding Partner of Five V Capital, also commented on the transaction:

Our investment in Automic has been an exciting journey, from 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.

The transaction is subject to customary regulatory approvals and is expected to be finalised before the end of the year.