Iress (ASX:IRE) agreed to divest its European low-latency market data business, QuantHouse, to BAHA Tech Holding for 17.5 million euros in cash consideration before costs upon completion, according to a Tuesday Australian bourse filing.

It entered into a binding share sale and purchase agreement with the Austria-based firm following a strategic review, which determined that the firm was not the "natural owner" of the business.

Iress will retain its traditional market data offering as part of its trading and market data business. The firms also agreed to a five-year supply agreement to provide existing QuantHouse market data feeds into Iress' software. Iress will continue to provide certain services for a period of up to 12 months to assist in the transition to BAHA's ownership.

Completion of the sale is subject to BAHA ensuring it has the necessary market data agreements in place.

The sale is expected to be completed by the end of the year.

Iress' shares fell 2% on market close.