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IRESS, the financial technology business, has raised fresh capital via an equity raising on the Australian stock market where it is listed. The money will be partly used to pay for the purchase of OneVue, which provides funds management and related investment services.

The share placement is expected to issue approximately 14.4 million new shares, representing about 8.2 per cent of IRESS’s existing ordinary shares. The placement targets equity raising of A$170 million ($115.6 million).

The capital-raising move was to ensure that IRESS’ net debt-to-profit ratio did not rise to 2.0 times, which is higher than IRESS would have wanted in the current stressed financial environment, the firm said. 

“The proceeds from this equity raising will be partially used to fund the proposed acquisition of OneVue as well as to strengthen our balance sheet and provide flexibility and capacity to pursue further investment opportunities. While the acquisition was contemplated based on debt funding and could be achieved with available debt, we have decided to adopt a more conservative funding strategy given the current economic environment,” Andrew Walsh, chief executive of IRESS, said.