The clearance will be subject to the Canadian cloud–based software and technology solutions provider's sale of its existing Australian businesses to a purchaser approved by the Australian Competition and Consumer Commission
ACCC will not oppose Dye & Durham’s acquisition of Link Administration. (Credit: aymane jdidi from Pixabay)
The Australian Competition and Consumer Commission (ACCC) said that it will not oppose Dye & Durham’s previously announced A$2.47bn ($1.67bn) acquisition of Link Administration subject to the Canadian legal technology firm divesting its existing Australian business.
Dye & Durham provides legal and business professionals with cloud-based software and technology solutions. Last year, it forayed into the Australian market through the acquisition of the property division of SAI Global and followed it up by acquiring GlobalX Information.
SAI Global’s property division serves conveyancers, solicitors, and the financial services sector with the required workflow software, systems, and information products to enable and complete the transfer of property.
GlobalX Information offers technology solutions and support services for conveyancers, law firms, property planning professionals, financial institutions, and government bodies.
Link Administration, which is based in Australia, is a technology-enabled provider of outsourced administration services for the administration of superannuation funds and corporate markets.
By acquiring the Australian firm, Dye & Durham will gain a stake of 42.77% in PEXA Group, which mainly operates as an electronic lodgment network operator.
PEXA’s electronic lodgment network product, which is called PEXA Exchange enables its users to electronically complete lodgments and settlements of properties via a digital process known as e-conveyancing.
According to the ACCC, the vertical integration of the information broking services, conveyancing and legal practice management software of Dye & Durham with the electronic lodgment network of PEXA leads to considerable competition concerns.
The transaction results in concerns that the Canadian firm and PEXA will allow mutual preferential dealing that would have hampered competition or increased barriers to entry in one or more markets in the conveyancing workflow, said the regulator.
The ACCC said that under the court-enforceable undertaking, Dye & Durham has to sell its existing Australian businesses to a purchaser approved by it.
ACCC chair Gina Cass-Gottlieb said: “E-conveyancing is critical to finalising property transactions in a number of Australian states and territories. The ACCC supports the development of competition in this important industry.
“A robust and enforceable regulatory regime, led by the Australian Registrars’ National Electronic Conveyancing Council, will be critical to ensuring effective outcomes in this industry.”
Last month, shareholders of Link Administration voted in favour of the proposed takeover of the company by Dye & Durham. The deal is also subject to approval from the UK Financial Conduct Authority and other customary closing conditions.