• Praemium issued second earn out statement to Iress
• Nil owed for second earn out period due to FUA threshold not being met
• Existing IOPB clients terminated contracts, leading to FUA outflows

Praemium Limited (ASX: PPS) has provided an update on the earn out related to its acquisition of the OneVue Platform Business (IOPB) from Iress Limited (ASX: IRE). The acquisition, which completed on 15 April 2024, included a potential earn out linked to retention and growth in funds under administration (FUA) from IOPB clients, to be tested at two separate 9-month intervals following completion. Praemium has now issued the second earn out statement to Iress, advising that nil is owed for the second earn out period, as the retained FUA in the period was less than the $3 billion threshold. This was due to outflows from existing IOPB clients since the date of acquisition, as well as existing IOPB clients terminating the contracts under which FUA was held on the OneVue platform. Under the transaction terms, Iress is deemed to have accepted Praemium's calculation of the second earn out amount, and no further payments are due to Iress. Praemium CEO Mr. Wamsteker stated that the company continues to believe the transaction will lead to around $3 million in annual EBITDA arising through synergies from the acquisition, and that the agreed terminations are not currently expected to have a material impact on underlying earnings expectations.