European digital wealth manager Moneyfarm has agreed to acquire UK-based digital pension advice firm Profile Financial Solutions, also known as Profile Pensions, for an undisclosed sum.
The acquisition will add 24,000 clients and £870m ($1bn, €1bn) in assets under management.
Profile Pension provides pension advice, tracing and consolidation services. It received investment from venture capital business Smedvig Capital in 2015 to boost its growth plans.
The deal will be financed by Moneyfarm’s shareholders – M&G, Poste Italiane, Cabot Square Capital, United Ventures and Fondazione di Sardegna.
As part of the deal, Smedvig will also become a minority shareholder in the European wealth manager.
The acquisition is expected to close in H1 2023, subject to regulatory approvals.
Giovanni Daprà, co-founder and chief executive at Moneyfarm, said: “Profile Pensions gives flexibility to pensions investing as it allows you to track down your pensions, identify which investments are suitable for you, and manage them in a way that’s more aligned to your circumstances thanks to the unique digital ‘whole of market’ advice capabilities.
“Through the acquisition of Profile Pensions, Moneyfarm will create an even greater opportunity for our clients to maximise the long-term value of their assets by allowing them to easily consolidate their pensions investments alongside their normal investment, Isa and Sipp accounts, setting Moneyfarm apart from any other platform in the UK.
“This acquisition is another testament to our ambitions, helping us consolidate our market position even in a challenging business environment”.
Jordan Mayo, chief executive of Profile Pensions, added: “As an independent company, we have grown organically to approximately £870m of AuM on the strength of our technology and service.
“We are delighted to become part of Moneyfarm, and to combine our pensions platform with Moneyfarm’s brand, scale and broader product offering to create the clear independent UK leader in digital investment advice.”