Moneyfarm has bought UK digital pension adviser and consolidator Profile Pensions, subject to regulatory approval.
The purchase of Profile Pensions marks an expansion of Moneyfarm in the UK pensions market.
Moneyfarm said the UK pensions industry is burgeoning, currently standing at £680bn and has grown by 24 per cent since 2016 with a number of strong underlying drivers.
Giovanni Daprà, co-founder and chief executive officer at Moneyfarm, said: “We are delighted about this acquisition because it enables Moneyfarm to grow into a larger and broader player, with a significant digital wealth management proposition across the UK and Italy.
“By combining Moneyfarm and Profile Pensions solutions, it will create an even stronger fintech business for customers.”
The deal has been financed by Moneyfarm’s current shareholders: M&G plc, Poste Italiane S.p.A, Cabot Square Capital, United Ventures and Fondazione di Sardegna.
As part of the deal, Smedvig Capital will also become a minority shareholder in Moneyfarm.
The acquisition is expected to close in the first half of 2023.
Moneyfarm said Profile Pensions will provide its clients with flexibility in pension investing by allowing them to track down pensions and identify which investment is suitable.
It will offer pension consolidation services alongside normal investments on Moneyfarm’s platform and will offer ongoing advice and support from a pension adviser.
“Profile Pensions gives flexibility to pensions investing as it allows you to track down your pensions, identify which investments are suitable for you, and manage them in a way that’s more aligned to your circumstances thanks to the unique digital whole of market advice capabilities," Daprà said.
"Through the acquisition of Profile Pensions, Moneyfarm will create an even greater opportunity for our clients to maximise the long term value of their assets by allowing them to easily consolidate their pensions investments alongside their normal investment, Isa and Sipp accounts, setting Moneyfarm apart from any other platform in the UK."
He said Moneyfarm has been on an "incredible journey" in the UK, having bought Wealthsimple’s UK book of business and entering into a partnership with M&G to provide their customers with its platform to support their D2C ambitions.
"This acquisition is another testament to our ambitions, helping us consolidate our market position even in a challenging business environment," he added.
"Over the last year, we’ve been working hard to improve our service and expect to expand our offering in 2023. We’re looking forward to sharing our plans for the year ahead.”
sonia.rach@ft.com
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