UK firm SimplyBiz Group has finalised its acquisition of financial services technology business Defaqto, having bought the entire issued share capital from its parent company Regulus Topco.
The independent provider of compliance and business services for financial advisers and institutions bought the fintech firm for £74.3m ($98.4m, €86.7m).
The agreement also sees SimplyBiz purchase £3.4m in cash from Defaqto’s balance sheet.
Defaqto operates a fintech platform for 8,500 financial advisers, providing 21,000 financial products and funds licensed by 230 providers – the largest database of financial products in Europe, SimplyBiz said.
Following the acquisition, the two firms will focus on sharing knowledge and expertise, with SimplyBiz opening up its advisory and asset management market and Defaqto advising on general insurance and banking.
“The acquisition of Defaqto will play an important role in building on the group’s strong momentum and enabling us to unlock a wide range of additional growth opportunities,” Neil Stevens and Matt Timmins, joint chief executives of the SimplyBiz Group, said.
“The combination of the largest provider of outsourced regulatory and business support to the retail financial services market, with one of the leading providers of financial information and technology, will create a market leading platform across retail financial services.
“Collectively, the two businesses will work to enhance our proposition to the banking and general insurance sectors, whilst continuing to invest in the leading fintech platform.”
Zahid Bilgrami, chief executive of Defaqto, said: “SimplyBiz’s decision to acquire Defaqto opens an exciting new chapter in our development. While it will enable us to continue operating in an independent and autonomous manner, it will also carry many advantages of being a part of a listed entity.
“It will enable us to develop new technology faster, and thus continue to develop market-leading products for our clients at a time of vast technological change in the financial services sector.”