Fintel, the Huddersfield provider of fintech and support services to the UK retail financial services sector, has agreed to acquire Synaptic Software, an independent provider of financial adviser planning and research software.
Synaptic services over 1,600 financial advisers, providing due diligence research, compliance tools and software which streamlines customers’ journeys.
Fintel will acquire Synaptic via 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 cash consideration of £3.5m, funded entirely from Fintel’s existing financial resources with further £0.5m of development expenditure committed to enhance and integrate its products.
On completion, the business is expected to have annual revenues of c.£2.3m and be in a break even position.
Synaptic is the fifth business acquired by Fintel this year, joining AKG, VouchedFor, Competent Adviser and Micap on its expanded platform.
Neil Stevens, Joint CEO of Fintel, said: “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.”