Silverlake Axis

Wish I was there to hear. Interesting philosophy talk.

Goh idea with math symmetry is one of the key reasons why I am confident about silverlake. Where other bigger players are looking to upsell and squeeze banks, cut costs, his take to resolve banking requirements in a fundamentally different manner stands out.

Vested.

(29-10-2014, 01:17 AM)thor666 Wrote: Wish I was there to hear. Interesting philosophy talk.

Goh idea with math symmetry is one of the key reasons why I am confident about silverlake. Where other bigger players are looking to upsell and squeeze banks, cut costs, his take to resolve banking requirements in a fundamentally different manner stands out.

Vested.

You hit it on the nail.
He did mention about how other companies fighting for Digital Economy's pies from Norm perspective.
Whereas he is tackling it from Exception point of view.

He keeps coming back to the equation.
Solving exceptions = Earning money
Being good Exception solvers = Clients coming to knock the door.
etc etc..

On Global InfoTech listing, prospectus already up in their website (I am yet to check on that), the question is the size.
Looking at Silverlake size now, it is probably not significant (just my opinion, have yet to check on the fact).

On partnership with HNA, things probably start to stir up.
In his own word getting "Exciting".
Not sure what is that supposed to mean.
But he acknowledges the toughness in working with HNA initially.

Silverlake Axis wins software upgrading contracts worth $15.5 million

SINGAPORE (Nov 26): Silverlake Axis ( Financial Dashboard) has secured two new software upgrading contracts from existing customers totalling RM40 million ($15.5 million).

One of the contracts involves the core banking system upgrade for the Singapore operations of a leading ASEAN Bank. The upgrading project will modernise the bank's existing system and allow the Bank to offer more sophisticated products across multiple channels with increased efficiency and rapid time-to-market.

For the second contract, Silverlake Axis will upgrade the Silverlake Integrated Provident Fund System (SIPFS) for Tabung Amanah Pekerja (TAP), a social security organisation and government agency in Brunei.

The latest version of SIPFS will enable TAP to operate more efficiently in meeting the demands of the public. After the 12-month project, the group will continue to provide TAP with system support and maintenance services.

Silverlake Axis closed 0.8% higher at $1.27.
http://www.theedgemarkets.com/sg/article...55-million

Silverlake Axis to acquire Auckland’s Finzsoft valued at $49 million

SINGAPORE (Dec 18): Silverlake Axis ( Financial Dashboard), the provider of IT solutions and services for banks, has entered into an agreement with the majority shareholder of Finzsoft Solutions to make a full takeover offer for all of Finzsoft’s shares at a price of NZ$3.00 per share ($3.029).

The seller has committed to accept the offer in relation to all of its 65.916% shareholding.

Finzsoft is an Auckland-based financial technology company that develops and implements software and solutions for banks and financial institutions in New Zealand and Australia. The company has a market cap of NZ$49.4 million.

To make the offer, Silverlake Axis has formed a company, Silverlake HGH, with a party associated with Andrew Holliday, Managing Director of Finzsoft, who is also associated with the majority shareholder of the company.

Fifty-one percent of the offeror is held by Silverlake Axis with the remaining 49% held by interests associated with Andrew Holliday.

Kwong Yong Sin, Group Managing Director of Silverlake Axis, said the acquisition is in line with the company’s strategy to expand its existing portfolio of software solutions and deliver new collaborative digital economy offerings throughout the Asia Pacific region.

“There are strong synergies between Silverlake Axis and Finzsoft’s products and solutions, and a natural alignment of target customers in the Asia Pacific region, being Tier One banks. We see Finzsoft as an important part of our Asia Pacific strategy going forward, and see Andrew Holliday and the Finzsoft team as having the capacity to leverage Silverlake Axis’s product and service offering to access opportunities in the Asia Pacific market,” said Kwong.

“The proposed transaction will provide Finzsoft with a committed cornerstone shareholder with deep industry knowledge and a global reach that will be beneficial as Finzsoft expands to meet a growing demand for its core and vertical banking applications,” he added.

Silverlake Axis rose 0.42% to close at $1.20 yesterday.

http://www.theedgemarkets.com/sg/article...49-million

[quote='ahyeh' pid='103403' dateline='1418868436']
Silverlake Axis to acquire Auckland’s Finzsoft valued at $49 million

SINGAPORE (Dec 18): Silverlake Axis ( Financial Dashboard), the provider of IT solutions and services for banks, has entered into an agreement with the majority shareholder of Finzsoft Solutions to make a full takeover offer for all of Finzsoft’s shares at a price of NZ$3.00 per share ($3.029).

Very interesting, thanks for sharing.
A quick search on Finzsoft shows at NZ$3, the PE is fair at 10.32. Their share now trades at NZ$5, running up recently from slightly less than NZ$3.

A quick look at their annual report shows that this is company only has 40 staff, NZ$9.4M revenue, $0.68M profit. Profit margin, PE, and grow rate are all lower than Silverlake. So it will be nice it their performance catches up.

It counts St George Bank in Australia as its long term client, and full customer list as:
Banks, Building Societies and Credit Unions

Heartland Bank
Nelson Buliding Society
Police and Families Credit Union

Finance Companies

DTR
Harvey Norman Holdings Ltd
Medical Assurance Society (MAS)
Pacific Dawn Finance
RACV
St.George, part of the Westpac Group

Motor Vehicle Finance

MTF
RACV
St.George, part of the Westpac Group
European Financial Services

So the real bonus will be for them to win the full core banking system from Silverlake

However, their offering seems to overlap with Silverlake. let's see how the integration goes...

Interesting development.
http://www.finzsoft.com/documents/Finzso...181214.pdf

Direct quote from the Chairman's statement above:
The Finzsoft board had engaged PWC to assist with a strategic review of Finzsoft’s capital and ownership structure. Through the review process we identified Silverlake Axis Limited as a strategic partner in the Asia Pacific region with the expertise, market access and client base to take Finzsoft to the next level.

This seems like a strategic partnership than acquisition.
The half year report provides a very interesting insights on the changes in Finzsoft:
http://www.finzsoft.com/documents/Finzso...tSep14.pdf

Financially the impact to Silverlake should be insignificant (at least in short term) but human & technology capitals will be an interesting boost.
Let's see how this turns out.

(18-12-2014, 10:44 AM)DCF Wrote: [quote='ahyeh' pid='103403' dateline='1418868436']
Silverlake Axis to acquire Auckland’s Finzsoft valued at $49 million

SINGAPORE (Dec 18): Silverlake Axis ( Financial Dashboard), the provider of IT solutions and services for banks, has entered into an agreement with the majority shareholder of Finzsoft Solutions to make a full takeover offer for all of Finzsoft’s shares at a price of NZ$3.00 per share ($3.029).

Very interesting, thanks for sharing.
A quick search on Finzsoft shows at NZ$3, the PE is fair at 10.32. Their share now trades at NZ$5, running up recently from slightly less than NZ$3.

A quick look at their annual report shows that this is company only has 40 staff, NZ$9.4M revenue, $0.68M profit. Profit margin, PE, and grow rate are all lower than Silverlake. So it will be nice it their performance catches up.

It counts St George Bank in Australia as its long term client, and full customer list as:
Banks, Building Societies and Credit Unions

Heartland Bank
Nelson Buliding Society
Police and Families Credit Union

Finance Companies

DTR
Harvey Norman Holdings Ltd
Medical Assurance Society (MAS)
Pacific Dawn Finance
RACV
St.George, part of the Westpac Group

Motor Vehicle Finance

MTF
RACV
St.George, part of the Westpac Group
European Financial Services

So the real bonus will be for them to win the full core banking system from Silverlake

However, their offering seems to overlap with Silverlake. let's see how the integration goes...

At first glance at this NZ acquisition first thing comes to my mind is why bother to go far far away to buy a peanut company with some small clients i don't recognize. In fact i wonder NZ has actually their own banks so far what i see mostly Australian banks opening branches there.

I not sure what are the market they are targeting. Most banks in NZ are from Australia anyway. Or they are buying into the products? But a small software setup like this probably has only fragmented software pieces to serve their small clients.

Whenever there is acquisition you can't run away without hearing synergy blah blah blah. I am getting freaked out hearing this synergy word. Really chill into my spine. So far i yet to see company venture into pacific country has any success.

I am interested in the company but this acquisition does send me signals that the business will have to venture into foreign land. Haha a land that full of sheep.

A few thoughts:

59% of Finzsoft revenue came from Australia with a key part from St George bank. (can google this, I don't have a specific link)

Growth at silverlake is slowing. Silverlake is unlikely to convert dbs as an end user, sg and my are likely to be more servicing on recurring streams of revenue. Silverlake needs to engage deep into other regions.

There is a likelihood that silverlake tried to go in Down under but as I suspect, the culture there is distinctly different to go in as a foreign entity. Seems like silverlake would like to go in via this acquisition instead. Proof of concept is critical in this case.
St george is part of westpac, it will be a big win to claim westpac using silverlake products.

I think, if one went in at a lower price earlier (<0.80), it would provide more margin of safety than to buy in now. Silverlake needs to take more risk for continued growth. As a shareholder, I accept that move.


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Today, Silverlake Axis drops 11c or 8.21%

From Maybank Kim Eng Singapore
- Stock reacting negatively to potential cancellation of the mega-bank merger in Malaysia.
- If true, contribution from RHB is not lost completely. RHB may proceed to upgrade its core banking system.
- Maintain BUY with unchanged SGD1.40 TP. Key risk to our TP comes from its failure to secure the RHB system upgrade.

(13-01-2015, 10:04 PM)FA+TA Wrote: Today, Silverlake Axis drops 11c or 8.21%

From Maybank Kim Eng Singapore
- Stock reacting negatively to potential cancellation of the mega-bank merger in Malaysia.
- If true, contribution from RHB is not lost completely. RHB may proceed to upgrade its core banking system.
- Maintain BUY with unchanged SGD1.40 TP. Key risk to our TP comes from its failure to secure the RHB system upgrade.

Something incorrect, RHB vendor is MicroLink and not Silverlake.