Fintel sells fund management business at 4.1x profits as part of new partnership
Thu, 16 Sep 2021 | DIVISION SALE
Fintech and support services firm Fintel has sold its fund management business Verbatim to Tatton Asset Management for £5.8 million as part of a new five-year strategic partnership. The sale represents a 4.1x multiple of the £1.4 million in profit that Verbatim contributed to Fintel in 2020. The deal sees Tatton Asset Management add Verbatim’s approximately £650 million in funds under management.
Through the strategic partnership, Fintel will also provide its Defaqto Engage tech to around 2,500 customers of Tatton and Paradigm via a five-year Software-as-a-Service (SaaS) enterprise partnership. This will extend Fintel's fintech customer reach by around 30 per cent and is forecast to generate revenue of at least £7 million.
The deal also involves Fintel embedding its Managed Distribution Service into the Tatton distribution platform, which will generate additional revenue throughout the duration of the partnership.
Fintel’s joint-CEO Matt Timmins said: “We are excited to announce our first major strategic partnership as Fintel with Tatton Asset Management. The partnership will expand our fintech customer reach by up to 30 per cent and significantly extend our Managed Distribution Service.”
“The partnership provides a fantastic foundation to further grow our SaaS revenues, delivering market-leading solutions which enable advisers to provide fully compliant advice more profitably. We have admired Tatton’s record of delivering investment returns for advisers and growth in their AUM and we are delighted to be working together in partnership.”
Tatton CEO Paul Hogarth added: “I am delighted to announce the acquisition of £650m of the Verbatim funds and this five-year strategic partnership with Fintel plc, a firm whose strategy and values are aligned with our own; keeping the IFA at the heart of our respective businesses.”
“The transaction clearly demonstrates the progress we are making in executing on our growth strategy. We have set out a roadmap for growth over the next three years, growing our AUM organically and by acquisition and extending our reach to the IFA community, the lifeblood of our industry, through strategic partnerships.”
"This transaction is evidence of that strategy in action and it enhances our proposition to IFAs and their clients further, with the multi-index and multi-asset funds complementing and extending our current fund range.”
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