Bravura sale hangs in the balance

DOUBT hangs over the $238 million acquisition of Bravura Solutions by venture capital firm Ironbridge Capital after contract negotiation delays forced the financial software company to downgrade earnings for the financial year.

Bravura was unable to finalise the deals by June 30, and as such couldn’t recognise the associated revenues in its earnings for the period.

It was forced to write down earnings before interest tax depreciation and amortisation (EBITDA) for the year ended June 30 from at least $23.5 million to between $19 million and $20 million.

As a result Bravura will not meet the EBITDA condition as part of the takeover offer from Ironbridge, and it has initiated discussions with the venture capital company to resolve the issue.

The talks are expected to take several weeks but Bravura remains confident of the outcome.

"Ironbridge has indicated that it remains positive about the transaction generally," it said in a statement.

Bravura also said a potential acquisition that it first flagged in a trading halt announcement on June 30 has yet to be finalised.

At the close of trading Bravura’s shares were down 22.1 per cent at $1.08.