Rubik and Revex enter into license arrangement.

Rubik Financial Limited (Rubik), the ASX-listed global provider of financial technology and software, last Friday announced it has entered into a term sheet with Revex Solutions Pty Ltd (Revex), containing an option for COIN to acquire Revex,  and a four year exclusive reseller agreement with Revex.

The term sheet entered into with Revex is non-binding. The parties have agreed to negotiate on an exclusive basis for a period of 180 days to agree full form, binding, transaction documentation.

Revex is revenue management software for Australian Financial Services Licensee’s and financial planning practices offering automated management of revenue, including commissions and client fees as well as relevant business information reporting.  Revex was established by John Brabender, the father of commission and revenue management software, having been the original founder of DMS, which was acquired by Xplan.

Reseller agreement

It is intended that on execution of a full form reseller agreement, Rubik will hold the distribution rights over the Revex software on an exclusive basis for Rubik Wealth’s customers, covering institutions, independent financial advisors (IFAs) and industry superannuation funds, as well as non-exclusive rights for  other customers with Revex continuing to support and market to its direct relationships.

Option agreement

The terms of the proposed option provides Rubik with the option to purchase the Revex business outright, at the end of a three year period.  The consideration will be based on a multiple of revenue achieved in the final 12 months prior to the exercise of the option.  The multiple paid will be dependent upon the source of the revenue.

Rubik Managing Director Wealth, Wayne Wilson, said that entry into the proposed deal would be a significant strategic outcome for Rubik. “Revex software solves the dilemma facing planners in the industry – and offers efficient commission and revenue management that meet the requirements of the FoFA reforms,” Mr Wilson said.

“The reality is that revenue and commission information needs to be collated from each of the many different investment products that clients hold. Often these fees are bundled together, and the task of itemising the fees, and unbundling them to account for those that are FoFA defined, can be onerous.

“Every institution has a different solution to this FoFA requirement. It is a time-consuming exercise that many practices are performing manually. When Revex is integrated with COIN it will provide fully merged FoFA documents, in an automated fashion, at the touch of a button.”

Revex Managing Director, John Brabender, said: “With the competitive and regulatory landscape changing, the pressure is on dealer groups and financial planners to provide cost effective and value add solutions to both advisers and clients. In this environment, technology efficiency solutions become a business focus.

“With Revex, fee management is simply managed and ongoing transactional reports are available enabling integrated transparency for reporting purposes.”

Key features of Revex include:

• Efficient processing of all commissions and fees regardless of source
• Fee invoice management including recurring invoices
• Effortless payment of all entitlements to advisers and referrals
• Extensive management reporting
• Export information to your General Ledger.

“In anticipation of entry into full form agreements, work has commenced on integrating Revex into the various COIN client systems. Rubik expects to have a fully integrated version of Revex available to all clients by November 2013,” Mr Wilson concluded.

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