Bluedoor is a leading software developer specialising in wealth management solutions and application tools designed to streamline administration processes for businesses offering products to the funds management and retirement savings markets.
Bluedoor has approximately 35 employees and reported revenues of approximately $7.0 million (AUD) for the fiscal year ended 30 June, 2008. Post acquisition the business will report directly to DSTi’s Chief Executive Officer for Australasia, Ian Mathieson.
Following its extensive success in the Australian funds management manufacturing space, DSTi will now embark upon its strategy to also become a significant participant in the funds management distribution and platform arena. The acquisition of Bluedoor provides DSTi with innovative technology and a team of experienced industry practitioners and top tier superannuation functionality in the Bluedoor Wealth.net solution.
“The majority of funds flows in Australia originate from the superannuation sector and it is therefore imperative that full superannuation capability exists within distribution platforms,” stated Mathieson
He continued, “The Wealth.net browser-based solution from Bluedoor manages a comprehensive suite of investment and retirement products and is an extremely cost-effective option capable of replacing multiple legacy systems with one integrated solution. Of crucial importance to both product providers and product distributors is the capability for the rapid rollout of new products.
DSTi has identified a range of opportunities for the Bluedoor solution within the superannuation-led distribution space in Australia and also believes there is a rapidly growing need in other parts of the world for the Wealth.net solution. The Wealth.net solution is available immediately for existing and new clients
Mathieson concluded, “The acquisition was based on a combination of Bluedoor’s quality solutions, early market success and exceptional team. Bluedoor has an already proven capability in the Australian marketplace with its new technology rollout and successful customer implementations. The quality of its staff is exceptional and this was a major attraction when assessing its strategic fit within the DSTi offering.”
For Bluedoor’s Executive Director, Martin Spedding, the acquisition introduces a market-changing opportunity for financial services organisations. “Investment organisations continue to select the Bluedoor system as they move away from legacy solutions, and we believe that our incorporation into the DST International offering will assist with the further successful penetration of the Wealth.net solution in the Australian financial services sector and beyond.”
Bluedoor’s financial results after November 14, 2008 will be consolidated with those of DST Systems. On a pro-forma basis, the transaction is not expected to have a material impact on DST Systems’ net income or earnings per share for 2008.