While Fintel is seeking businesses to acquire, the group does not have a target number in mind and said the quality of the business is much more important.
“What we do have is significant financial resources that will enable us to make a large acquisition or a number of smaller acquisitions,” he said.
“We don't have a particular target number in place. We have a target to do this to effectively deploy capital to those businesses that will better support and enhance our customer set.”
Tatton - Fintel partnership
In September 2021, Tatton Asset Management bought the Verbatim funds from Fintel, formerly known as Simplybiz, for £5.8m.
As part of the transaction, Tatton entered a five-year strategic distribution partnership with Fintel which will provide it with access to 3,800 financial intermediary firms and its 6,000 Defaqto users.
In the half year results last month, the group said the strong balance sheet was following the strategic divestment of non-core Zest Technology and Verbatim funds and the continued strong cash generation of the business.
Timmins told FTAdviser that Fintel is “very pleased” with the relationship with Tatton Asset Management and said the firms have worked very hard behind the scenes.
“Tatton are presenting and have presented to the Simplybiz membership on their DFM solution and we have been out presenting to the membership on the Defaqto software,” he said.
“We have already started to onboard Tatton firms onto the Defaqto software which Tatton are making available free of charge to their customers.
“The deal is working extremely well between the two parties.”
From a financial point of view, Timmins said it has already replaced the revenue that it lost through the sale of Verbatim and is “confident of the positive financial impacts” on the business.
“Overall it's been a bit of a benchmark deal for us in terms of what two businesses can achieve when they both concentrate on what they're really strong at,” he said.
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