Corporate regulator ASIC is expected to dump Nuix when it chooses its software partner late next month, as concerns rise over the troubled tech stock’s cash burn and a wave of client defections.

While Nuix still hopes to win the 10-year tender to provide digital forensics and eDiscovery platforms, insiders close to the process said ASIC was keen to distance itself from the company as investigations continue, and that other government departments including the Tax Office and the ACCC were likely to follow ASIC’s lead.