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Insurance consigned to the past as Stream changes direction

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Former claims manager Stream says the Qusol insurance software business will no longer be a key part of its operations as it moves out of insurance to become an electrical products and services company.

Stream, which in June entered into an agreement to acquire the capital of Mayfield Group Investments for $25 million, will become Mayfield Group Holdings. Last week it issued a share offer prospectus to raise $1.2 million as part of its proposal.

The company has been suspended from trading on the Australian Securities Exchange since June 22 while the deal is finalised. It intends to change its name and stock market code as it moves out of insurance.

“The company’s focus will become that of Mayfield’s, being the provision of electrical products and services to electrical infrastructure operators throughout Australia,” it says in the prospectus.

Stream is looking to sell Qusol NZ, but says that there are no current negotiations with potential purchasers and it is unlikely it will be sold by November 28. That will mean an additional cash payment of $250,000 will likely be made to the Mayfield vendors.

Qusol provides insurance claims management and workflow management software to the insurance and construction industries and has been the key business for Stream as it has exited other areas.

Stream pursued expansion plans in Australia, the UK and New Zealand, including the acquisition of loss adjuster Cerno in 2015, before running into financial trouble.

The Australian unit went into voluntary administration and was subsequently liquidated, the UK business was sold and NZ claims service provider Symetri was also divested.

Chairman Lawrence Case says in the annual report that the board has been investigating acquisitions over the past three years with the aim of finding a profitable, stable business of sufficient size to justify the costs of being a listed company, and that could be bought at a reasonable price.

“If the Mayfield transaction proceeds, the Qusol software business will no longer be a core activity, but it is clearly the case that the Qusol business has kept Stream alive during this period,” he said.