KPMG Australia’s acquisition of Markets IT is expected to boost the firm’s depth and scale in the burgeoning capital markets technology sector. The terms of the deal were not disclosed.

Markets IT has developed since 2011 into a leading Australian technology consultancy specialising in financial services. The Melbourne-based firm implements integrated trading, risk management, regulatory reform, trader surveillance, processing and post-trade solutions for both buy and sell-side organisations including banks, clearing brokers, central banks, investment managers and hedge funds. 

In 2013 Markets IT became Australia’s first system integration partner for Murex, a global provider of cross-asset trading, risk management and processing technology.

“Financial services organisations face an unprecedented landscape of rapid change – continual regulatory changes, heightened competition, innovation threats and opportunities, and technology changes,” KPMG Australia CEO Gary Wingrove said.

“There has never been a greater need in the market for integrated, business-centric technology services for these clients. And effective implementation will require deep subject matter expertise in both business and technology.

“Markets IT is a very timely and strategic acquisition that also supports our global capital markets strategy, and our growing Murex-related services here in Australia as well as in Asia Pacific, Europe and South Africa,” he said.

Mr Wingrove said capital markets had been grappling with regulation challenges for the past five years, but the intensity had increased as implementation deadlines of associated rules, controls and technology arrived. 

“Significant cost cutting pressures provide further complexity,” he said.

“Globally, system consolidation and replacement of legacy technology remains the biggest driver of anticipated technology spending increases.”

KPMG research showed total capital markets technology spending globally is forecast to exceed US$100 billion by 2018, with forecast spend allocated to risk management-related technology rising to over 18 percent of this by 2018.

Founder of Markets IT, Tim Robinson, has joined KPMG Australia as a partner. Co-founder Craig Snell and fellow director John Rusjan also join KPMG as directors together with their team of specialists in Melbourne and Sydney.

Merging with KPMG’s existing Capital Markets Technology team, this creates a combined team of around 40 experts nationally, supported by the group’s existing regional and global capability.

Markets IT was founded in 2011 and has grown rapidly off the back of successful project delivery and strong working relationships with major financial institutions.

“Our growth was driven initially as a provider of Murex services, but increasingly we’re diversifying through delivery of regulatory related technology services including trader surveillance,” Robinson said.

“Market IT’s offering is directly complementary to KPMG’s business, regulatory and technology enablement services and strategic areas of focus. I believe the combination of business platform enablement services, together with KPMG’s brand and broader risk and transformation expertise positions us strongly to become the local market leader,” he said.

“We anticipate further rapid growth in the Australian market going forward.”

KPMG Technology leader, Richard Marrison, who oversaw the deal, said, “Technology enablement is a priority investment area for KPMG. This is the third acquisition we’ve made in this space recently in Australia.  Technological advances will continue to reshape operating models and service delivery in financial services over the coming years.

“The most successful organisations will utilise technology to ease the regulatory burden, and support growth and innovation.”

The Market IT deal is the 11th acquisition by KPMG Australia in the past two years including social media risk consultancy, SR7; the Melbourne team of Pacific Strategy Partners; an accounting practice in Karratha, WA; mining services consultancy Momentum Partners; SGA Property Consultancy; First Point Global cyber security business; accounting and advisory business Hayes Knight (WA); human rights and social impact consultancy, Banarra; Microsoft implementation partner, Hands-on Systems; and The Performance Clinic.

www.kpmg.com.au

About KPMG

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

ends

THE AUSTRALIAN Rhino is now becoming famous all over the world. Rhinoceros may never have native to Australia, but their hardy namesake, Rhino-Racks, are certainly earning a global reputation.

Knowing how tough roof racks had to be to measure up to the demands of the Australian motor industry set former tractor salesman, Richard Cropley, thinking about how to make these handy vehicle accessories better. 

Mr Cropley set to it 25 years ago and today he has turned the humble roof-rack into a multi-million dollar business.

In 1992 he began production of his first set of Rhino-Rack roof racks for his Sydney based business, Roof Rack City. Now stocked in hundreds of stores around Australia, as well as distributing internationally in the US, Europe, New Zealand and throughout South America, Rhino-Rack is Australia’s leading manufacturer of roof racks.

Mr Cropley’s focus on simplicity, ergonomics and reliability in design have helped make Rhino-Rack one of the world’s most reputable brands, while still retaining their Australian roots. Almost all of the production and manufacturing is completed in Australia with Australian materials.

With sales today approaching $50 million a year, Mr Cropley is striving to continue growing, entering new markets and holding onto the philosophy that “being an entrepreneur is a seven-day-a-week job”.

Born in Sydney and splitting his time between the city and the family farm in Goulburn, Richard Cropley spent most of his early career in the agricultural sector, selling tractors after a three year stint farming in Papua New Guinea. Never one to do anything in half-measures, he became the Queensland marketing manager for Versatile Farm Equipment and within a year established himself as the world’s number one tractor salesman.

His journey to become the king of roof racks began in 1987 when a visit to his brother in Perth put the brand Rola in his sights. Rola was a roof rack brand that was one of the biggest sellers in his brother’s yacht chandlery store, so together they bought the brand using all their savings and a bank loan. Within a year they quadrupled Rola’s turnover to $4 million a year.

After just a year, Richard decided to separate from Rola to open up the first speciality roof rack store in Sydney, Roof Rack City – a store he still owns to this day. Seeing hundreds of models of these racks and installing them himself, he had the thought that goes through every innovator’s head, “I can do better than this.”

Designing his own leg mounts and bar, Rhino-Rack Roof Racks was born in 1992. Within 24 months Rhino had contracts with Toyota and Telstra to provide all their work vehicles with Richard Cropley’s roof racks.

The biggest risk, he said, came with the move into international markets, which was hindered by an unforeseen event. The plan to open a hub in Denver was almost derailed by the Global Financial Crisis, which saw retailers of all levels cut back and avoid stocking new products. But Mr Cropley found new opportunities online, right as the boom of online shopping began. Rhino is now stocked on many online stores and close to 100 physical outlets in North America.

An insatiable drive to solve problems and be the best has made Mr Cropley take Rhino-Rack to where it is today.

“With any product, whether it be roof racks, computers or coffee mugs, there is always going to be a better design out there,” he said. “So always look for ways to innovate and change your product. That’s how we’ve kept our doors open while competitors have closed theirs.”

www.rhinorack.com.au

ends

US-AUSTRALIAN drug discovery company, Novogen Limited, which is listed on both the ASX and NASDAQ, has announced a breakthrough, with its patent for the superbenzopyran (SBP) drug family being granted in Australia for the potential treatment of cancerous tumours.

This patent covers Novogen’s lead SBP candidates Cantrixil and Trilexium and it provides full protection for Novogen’s intellectual property (IP) for the SBP family until 2035. 

Novogen’s three lead molecules Cantrixil, Anisina, and Trilexium, are in advanced preclinical development for various cancer types, with the most advanced molecule, Cantrixil, slated to enter clinical trials in the second half of 2016.

In addition, the key patent application covering the first lead anti-tropomyosin (ATM) compound, Anisina, has been examined and accepted by the Australian Patent Office. The application has now entered the standard three-month opposition window prior to being granted.

According to Novogen North America CEO, Dr Andrew Heaton, these milestones help validate the company's discovery platforms and represent critical milestones in IP protection. 

“The SBP patent covers a wide range of new chemical entities, including Cantrixil and Trilexium,” Dr Heaton said. “Critically, the patent covers composition of matter, a new abridged method of manufacture, and treatment for a wide variety of cancer types.

“Our key SBP assets are now fully covered in Australia. Furthermore, passing scrutiny in Australia will aid the ongoing global roll-out of this patent.” 

“The availability of the Global Patent Prosecution Highway will permit accelerated examination in overseas jurisdictions, based on acceptance of an Australian application. This provides an opportunity to expedite examination and subsequent patent grant of SBP and ATM applications in a number of key overseas jurisdictions, such as the United States, Japan and Korea,” he said.

Cantrixil has completed the necessary toxicology studies in readiness for the first human trials.

www.novogen.com

ends

VIDEOPRO executives Jason Derry and Cameron Douglas have taken a stake in the long-standing Brisbane-based audio-visual business, aiming to drive future growth in cloud and software based technology.

Mr Derry, who is Videopro Business Solutions general manager, and Mr Douglas, who is Videopro Business Solutions sales director, have joined founder and chairman Shane Leaney, chief executive officer Ian Wright and chief financial officer Jason Sing as shareholders. 

The ownership changes come as Videopro prepares for an expected 50 percent jump in profit this financial year, thanks to a renewed focus on services, service levels and operational improvements.

Mr Derry, who has been with Videopro for more than 20 years, said this year would be an exciting one for the company.

“Videopro was set up as a retail business when it opened its doors in 1980 and those foundations are still important to us,” Mr Derry said.

“Today more than 60 percent of our business is B2B (business-to-business) and we see that increasing significantly in the next few years. We see real growth potential with the business and are excited about being part of the next phase.”

Last year Videopro’s revenue hit almost $75 million.

Videopro counts Queensland’s biggest universities, the Department of Justice and Attorney General, the Department of Education and Training and Queensland Health among its client list. The company’s wide scope of work has included some of Queensland’s largest audio-visual projects, including the massive job of fitting out the Supreme and District courts in Brisbane.

“We’ve gone from selling standalone integrated AV systems, to network and cloud hosted software led solutions that can provide all kinds of automation and intelligence in just a few years,” said Mr Douglas, 31, who worked for Videopro for more than a decade before becoming a shareholder.

“It is an exciting time for anyone in our industry who is able to innovate and, more importantly, execute change in their business.”

Mr Douglas said the company and its 130 staff were part of Brisbane’s growing innovation sector.

“We work with a lot of startups here and have a real appetite for change,” Mr Douglas said.

“Right now and into the foreseeable future, that change is rapid. Hardware-based technology is shifting across to cloud and software-based technology. The trick isn’t to survive or adapt to the change but to drive it.”

Videopro is also connected to a national business, named Connected Vision, which delivers technology solutions to multi-national companies around Australia. It is in the process of finalising an international partnership deal that will see the company adopting a worldwide approach.

Videopro is still firmly rooted in the Brisbane suburb of Eagle Farm and the new owners say they plan to keep it that way.

“If anything, we have become more focused on Brisbane in the past 12 months and that is partly because of the new opportunities emerging around innovation here,” Mr Derry said.

“We have a 4000sqm premises, with 2500sqm of warehouse and installation staging space and 1500sqm of office area. It’s an amazing set up and allows us to service our customers in a unique way.”

www.videopro.com.au

ends