Fintel sells fund management business at 4.1x profit under new partnership

Thu Sep 16, 2021 | DIVISION SALE

Fintech and support services firm Fintel have sold their fund management business Verbatim to Tatton Asset Management for £ 5.8million in a new five-year strategic partnership. The sale represents a multiple of 4.1 times the profit of £ 1.4million that Verbatim contributed to Fintel in 2020. The deal sees Tatton Asset Management add the roughly £ 650million of funds under Verbatim’s management .

Through this strategic partnership, Fintel will also deliver its Defaqto Engage technology to approximately 2,500 Tatton and Paradigm customers through a five-year Software-as-a-Service (SaaS) corporate partnership. This will expand the reach of Fintel’s fintech customers by around 30% and is expected to generate revenues of at least £ 7million.

The deal also involves Fintel integrating its managed distribution service into the Tatton distribution platform, which will generate additional revenue over the life of the partnership.

Fintel Co-CEO Matt Timmins said: “We are delighted to announce our first major strategic partnership as Fintel with Tatton Asset Management. The partnership will expand our fintech customer base by up to 30% and significantly expand our managed distribution service. “

“The partnership provides a fantastic foundation to further grow our SaaS revenue, providing leading edge solutions that enable advisors to deliver fully compliant advice in a more cost effective manner. We have admired Tatton’s track record of delivering advisor return on investments and growing their assets under management and are delighted to work together in partnership.

Tatton CEO Paul Hogarth added: “I am delighted to announce the £ 650million acquisition of Verbatim funds and this five-year strategic partnership with Fintel plc, a company whose strategy and values ​​are aligned with ours; keep IFA at the heart of our respective activities.

“The transaction clearly demonstrates the progress we are making in executing our growth strategy. We have set a roadmap for growth over the next three years, increasing our AUM organically and through acquisition and expanding our reach to the IFA community, the lifeblood of our industry, through strategic partnerships. “

“This transaction is proof of this strategy in action and it further enhances our proposition to AFIs and their clients, with multi-index and multi-asset funds complementing and extending our current range of funds. “

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