Mutual IT maestros plan merger

Two technology services companies that count mutual ADIs as their principal clients are negotiating a merger. The pair are Sydney-based Transaction Solutions and Adelaide-based Data Action.

The Adelaide-based Data Action provides core banking software and hosting services to about 28 clients in the mutual financial services sector, while TAS provides hosting services for about 53 customers.

TAS and Data Action yesterday said they signed a heads of agreement to allow more detailed due diligence over the coming weeks.

TAS Chair Alex Sala said in a statement the complementary nature of both businesses means combining operations had the potential to significantly strengthen the competitiveness of any newly-merged entity, while opening up new service opportunities, including diversifying its services and client base in the broader financial services market.