Fintel agrees acquisition of Synaptic Software
Fintel
275.00p
12:35 24/12/24
Financial technology and support service provider Fintel announced an agreement to acquire Synaptic Software, an independent provider of financial adviser planning and research software, on Tuesday.
The AIM-traded firm said Synaptic serves more than 1,600 financial advisers, offering due diligence research, compliance tools, and software solutions to streamline customer interactions.
It said it was well-regarded for its product range, enabling advisers to improve efficiency and deliver better client outcomes.
Fintel would make the acquisition through its technology and knowledge platform, Fintel IQ, which it said would enhance its capabilities, scale, and intellectual property.
The terms of the acquisition included a net upfront cash consideration of £3.5m, financed entirely from Fintel’s existing financial resources, along with an additional £0.5m committed to developing and integrating Synaptic’s products.
It said the acquisition was anticipated to be finalised in the coming months, pending regulatory approval.
On completion, the business was expected to generate annual revenues of about £2.3m and reach a break-even position.
The board said the strategic acquisition aligned with Fintel’s broader goal of improving the retail financial services market, fostering the value of financial advice, and boosting consumer confidence and trust.
Synaptic would be its fifth addition this year, joining AKG, VouchedFor, Competent Adviser and Micap on its expanding platform.
“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,” said Fintel joint chief executive officer Neil Stevens.
“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.”
At 0810 GMT, shares in Fintel were down 0.89% at 223p.
Reporting by Josh White for Sharecast.com.