Iress will purchase superannuation fund administration service provider OneVue Holdings ((OVH)) for $115m.

While the purchase may create long-term value, Morgans assesses earnings per share will be reduced in the short term, as OneVue is loss-making under the Iress accounting approach.

The plan is to fully integrate the platforms with the existing Acurity superannuation business. The deal is associated with an equity raising of up to $170m.

Will Morgans retains an Add rating and reduces the target to $13.74 from $14.94.

Sector: Software & Services.

Target price is $13.74.Current Price is $11.21. Difference: $2.53 - (brackets indicate current price is over target). If IRE meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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