Japan’s Nomura Research Institute to buy AUSIEX, eyes pension market

30, Apr. 2020

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SYDNEY, NNA - Nomura Research Institute Australia Pty. Ltd. (NRIA) has sealed a deal to buy 100 percent of Australian Investment Exchange Ltd. (AUSIEX), the wholesale arm of Commonwealth Securities Ltd., from its parent Commonwealth Bank of Australia Ltd. (CBA)

“The acquisition serves as an anchor point for NRI’s accelerated expansion into global financial markets,” Nomura Research Institute Ltd. (NRI), which wholly owns NRIA, said in a press release issued Tuesday.

The deal was valued at more than AU$85 million ($55.6 million), according to The Australian newspaper. The share transfer is scheduled to be completed by June 2021, the press release said.

AUSIEX provides trade execution, settlement and portfolio administration solutions and has more than 10,000 independent financial advisors and major financial institutions.

NRI said the deal would allow the group to establish its presence in the wealth management market in Australia where long-term structural growth is expected to continue thanks to Australia’s national superannuation pension scheme and growing population.

In Australia, people are required to join the superannuation scheme to set aside money for their retirement while employers are required to make contributions for their employees in addition to their wages.

The latest acquisition comes after NRI’s acquisition in 2016 of ASG Group, which is a leading IT business solutions provider in Australia and offers consulting services and business intelligence, and big data and analytics services.

NRI has set a long-term management goal “Vision 2022” under which it aims to almost double its overseas sales to 100 billion yen ($937.3 million) by fiscal 2022 from 53 billion yen recorded in fiscal 2018.