Fintel (LON:FNTL), a provider of fintech and support services to the UK retail financial services sector, today announced that it has agreed to acquire Synaptic Software, an independent provider of financial advisor planning and research software.
Synaptic serves more than 1,600 financial advisors, providing due diligence research, compliance tools and software that streamline client journeys. It has a wide range of products, which enable advisers to realize the benefits of efficiency and produce better results for their clients.
Fintel will acquire Synaptic through Fintel IQ, its technology and knowledge platform, further enhancing its capabilities, scale and IP. Under the terms of the acquisition, Synaptic is being acquired for a net upfront consideration of £3.5m, funded entirely from Fintel’s existing financial resources with further development expenditure of £0.5m committed to product enhancement and integration her.
The acquisition is expected to be completed in the coming months, subject to regulatory approval.
On completion, the business is expected to have annual revenues of around £2.3m and break even.
The acquisition is in line with Fintel’s strategy to improve the retail financial services market, promote the value of financial advice and increase consumer trust and confidence. Synaptic is Fintel’s fifth business to acquire this year, joining AKG, VouchedFor, Competent Adviser and Micap on its expanded platform.
Neil Stevens, Joint CEO of Fintel, commented:
“Synaptic is an established consulting and research software business that complements and extends our current capabilities and provides us with positive synergistic opportunities for growth and value in the near future. This transaction will further consolidate our central market position as a provider of technology, research and advisory services to the advisory market. We are committed to investing in Synaptic, developing its standalone products and making Webline integration into Defaqto Engage high priorities as we continue to improve our offering and create better outcomes for everyone.”