Fintech specialist Fintel (FNTL) announced the acquisition of Synaptic Software, a provider of financial adviser planning and research software.
Fintel will acquire Synaptic via Fintel IQ, its technology and knowledge platform. Under the terms of the deal, Synaptic is being acquired for a net upfront cash consideration of £3.5m, which Fintel will fund wholly from its existing financial resources. Fintel also committed a further £0.5m of development expenditure to enhance and integrate Synaptic's products.
The acquisition is expected to complete in the coming months, subject to regulatory approval. On completion, Fintel expects the business to have annual revenues of c. £2.3m and be in a breakeven position.
Neil Stevens, Joint CEO of Fintel, commented:
"Synaptic is an established adviser software and research business which complements and extends our current capabilities, and offers us positive synergistic opportunities for growth and value in the near term. This transaction will further cement our central market position as the provider of technology, research and consulting services to the adviser market. We are committed to investing in Synaptic, developing its standalone products and bringing the Webline integration to Defaqto Engage as high priorities, as we continue to enhance our offering and create better outcomes for all."
View from Vox
Another acquisition announcement from Fintel as the fintech specialist continues to consolidate its leading position in the UK advisor market. Synaptic services over 1,600 financial advisers, providing due diligence research, compliance tools and software. It has a highly regarded range of products, which enable advisers to realise efficiency benefits for their customers.
The acquisition is highly complimentary to Fintel's existing offerings, and is expected to further enhance Fintel's scale and IP in the retail financial services space. As part of the deal, Fintel has committed a £0.5m investment in Synaptic to develop and integrate the latter's products into Fintel's suite. Synaptic is the fifth business acquired by Fintel this year, joining AKG, VouchedFor, Competent Adviser and Micap.
Amid this aggressive expansion and with strong sales momentum into H2, Fintel is set for continued growth, supported by its robust balance sheet and positive M&A pipeline.
Follow News & Updates from Fintel: