Fintel has completed two tech firm acquisitions via its subsidiary Defaqto and Fintel IQ as it looks to expand its adviser capabilities.
In its half year results published today (July 27), the firm announced the purchase of Micap by subsidiary business Defaqto.
Micap provides independent research and advice tools for tax advantaged investment products.
Fintel believes the deal will extend Defaqto’s reach into the tax-advantaged market, expanding its data footprint and research capabilities.
The purchase completed in July 2023 and was funded entirely from cash reserves with an upfront cash consideration of £3mn.
There is also a £1mn cash consideration, deferred for one year, and a £500,000 contingent earnout based on certain trading criteria being delivered in the first year of ownership.
In addition to this, Fintel also bought Competent Adviser via Fintel IQ, a newly formed technology and knowledge platform.
Competent Adviser is a platform which helps advisers meet increasing regulatory requirements.
This purchase was also completed in July 2023 and funded entirely from cash reserves with upfront cash consideration of £2.5mn.
There is also a £500,000 contingent earnout is based on certain trading criteria being delivered in the first year of ownership.
Matt Timmins, joint CEO of Fintel, said: “Fintel has made a positive start to 2023, with a solid performance in our core business and significant strategic progress through a series of successful investments and acquisitions.
“During the period, Fintel successfully negotiated a new five-year technology contract for its member firms with an existing vendor on improved terms, which will reduce pass through costs and the associated revenues, whilst increasing Ebitda margin.
Elsewhere in the results, Fintel reported a 1.6 per cent uptick in core revenue at £27.6mn, up from £27.1mn in the same period last year.
In the six months to June 30, Fintel, which rebranded from the SimplyBiz Group, reported a 4 per cent increase on a like for like basis, up from £26.6mn.
Timmins added: “We are pleased to report significant strategic progress achieved in the first half of 2023.
“Through a series of successful acquisitions and investments, we have expanded our unique service and technology platform, propelling us towards accelerated growth.
“We are confident that our strategic progress, coupled with strong organic growth drivers, firmly positions us for sustainable growth and ongoing success, as we continue to inspire better outcomes for all.”
sonia.rach@ft.com
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