Glasgow-based wrap platform Nucleus has entered into a binding agreement to acquire the UK business and assets of Genpact Wealth Management UK, operates as OpenWealth.
Also based in Scotland’s largest city, the firm has provided business process outsourcing services to Nucleus since 2011; including account servicing and administration.
Nucleus described the acquisition as “the next step in the company’s journey to have to have increased control over its processes, service offering and product development”, while continuing to license its core Sonata software from Bravura Solutions.
In November 2018, the wrap platform unbundled its technology arrangements from OpenWealth, contracting directly with Bravura.
The Nucleus board added that the acquisition of the assets will further accelerate the firm’s product development and automation programme, provide scope to enhance the level of efficiency of its offline service, create growth opportunities for its people, and accelerate the expansion of its operating margin as Nucleus growth assets under administration.
Details of the deal
The total cash consideration for the UK business and relevant assets of OpenWealth is £1.5m ($1.9m, €1.67m).
The deal is expected to complete before the end of 2020.
As part of the agreement, OpenWealth will continue to provide a restricted range of services to Nucleus for roughly 15 months.
The OpenWealth staff who currently provide services to Nucleus will transfer to the wrap platform, taking headcount to approximately 380 people.
Marking a milestone
David Ferguson, founder and chief executive of Nucleus, commented: “Nucleus has continued to grow in recent years, and we expect the greater control afforded by the acquisition to further strengthen our positioning as we pursue our goal of being the most tech-enabled wrap platform in the UK.
“I’m looking forward to welcoming all of our new colleagues into the business. The Nucleus / OpenWealth combination has worked well for the better part of a decade and bringing the two together will allow us to focus more than ever on developing our online product and offline services.”
He added: “Today marks the start of a new stage in our journey, a milestone towards us achieving ta market-leading position for our customers. Improving the quality and flexibility of what we do will be central to that, and I’m excited by the opportunity this affords us in enhancing the overall user experience and helping us to realise our growth ambitions.”