Financial software and services company Praemium (ASX:PPS) has revealed that its wholly-owned subsidiary, Praemium Australia, has been issued with an equity stake of just under 20% of Powerwrap Limited.
The stake was issued in lieu of payments owned by Powerwrap. As part of the arrangement, Praemium is now entitled to appoint a director to the Powerwrap board.
Praemium said it planned to equity account for its subsidiary's interest in Powerwrap, and that it does not expect the transaction to have a material impact on FY11 results.
Praemium and Powerwrap have a long-standing commercial relationship.