Prescient move by Davy to be indemnified over AIBIM

I hear the renewal of the former AIB Asset Managers (AIBIM) business, which the bank sold in 2012 to South African outfit Prescient, which promptly flipped it to Davy, is on track.

It appears likely the business, which has been renamed Advance Investment Managers, will be married in some way with the vestiges of Bloxham, also snapped up by Davy.

The Davy folk must be glad, however, that the terms of their purchase of the business from Prescient indemnified them from any legal actions arising from past actions.

The former AIBIM is being sued for more than $1 million (€753,000) by Infinite, its former US-based tech supplier, in a recently filed case in California. The alleged infractions, which are connected to the ending of Infinite's contract, occurred at a time when the business was still owned by AIB. So it is possible that the bank, in turn, has indemnified Prescient. AIB was unavailable for comment.

The US tech firm claims it was taken on as a software supplier by AIBIM in 2010.

In early 2012, it says, AIBIM said it was in “divestment mode” and wanted a different type of contract.

Infinite alleges that as the business was being handed over to Prescient, the contract was terminated by AIBIM, which allegedly said it was because of talks with their “South African colleagues”. Infinite took the hump and billed the business for the full five-year maintenance contract.

A defence by the old AIBIM has yet to be filed, although one surely exists.