Wilco International, a software and services provider specializing in outsourcing, e-brokerage and straight-through processing (STP), has agreed to purchase the SUMMIT broker/client accounting system from Computershare Technology Services (CTS). CTS is the Australian technology subsidiary of Computershare, a firm that runs share registry businesses worldwide.
The transfer of the product, which results in a one-off gain of A$6.4 million ($3.38 million) for CTS, will take place over a transition period, with CTS still offering support through Wilco to SUMMIT users. The product is being used in Australia by several leading retail and institutional brokers and is installed in a bureau environment servicing the Australian franchisee of E*Trade Australia, Nova Pacific Securities.
The SUMMIT system has always been somewhat of a black sheep in CTS’s product range. Other products, like ASTS, a trading system for stock exchanges, or ORMS, an order management system, have been successfully sold throughout Asia, Europe and the US. SUMMIT, though, has only been implemented in Australia and New Zealand and as a processing/accounting solution that aims to facilitate STP from order entry to settlement, trade confirmation and automated banking, it has more in common with Wilco’s range of products. In fact, there is quite a lot of duplication of functions between SUMMIT and Wilco’s flagship product Gloss.
“SUMMIT is much more for domestic operations in Australia,” explains Wilco marketing manager Mike West. “However, international firms with operations in Australia might still want to stick with the Gloss system.”
West characterizes the SUMMIT acquisition as a fast track entry into the Australian marketplace. “As well as jumping right into the processing market, we’ve acquired some excellent staff with deep local expertise as well as some key clients.”
For its part, CTS wants to wish its product, and the staff and customers that go along with it, all the best with the new owners. "It is an excellent product that deserves the kind of expertise and commitment Wilco can bring," says Penny Maclagan, managing director at Computershare Technology Services.
