Global investment research giant Morningstar has agreed to acquire 100% of the UK and international arm of platform provider Praemium for £35m ($46.3m, €41m).
The deal will comprise of Praemium’s operations in the UK, Jersey, Hong Kong and Dubai.
Across its UK and international business, Praemium serves around 500 independent financial advisers and provides access to investment strategies to serve end clients.
The end-to-end solution from Praemium will add to Morningstar’s existing data, fund profiles, portfolio analytics, and investment management capabilities available to advisers. Praemium and Morningstar will work together to ensure a smooth transition for customers and employees.
Completion of the transaction remains subject to regulatory approval from the Financial Conduct Authority (FCA) and the Jersey Financial Services Commission and other customary conditions. Both firms expect to complete the deal during Q2 or Q3 2022.
‘Committed parent’
Mark Sanderson, Praemium UK and international managing director, said: “The focus throughout the deal process has been on finding a new owner that is the right fit for us and the right fit for our customers.
“We wanted a committed parent with a long-term view and the resolve to uphold our best-in-class platform experience, free from customer disruption. We were looking for the enthusiasm and drive to continue the Praemium growth story. We know with this proposed deal with Morningstar, we can confidently say we have found the perfect fit.”
Daniel Needham, president of wealth management solutions for Morningstar, added: “Praemium has a fast-growing UK and international business and a talented team we look forward to welcoming to Morningstar. Technology is playing a larger role in everyone’s lives and expectations for how companies deploy it are evolving quickly.
“Advisers and the investors we jointly serve are no exception, and Praemium’s digital-first capabilities will allow us to reduce friction, lower costs, provide more choice, and improve efficiency for advisers. This gives advisers time back to deliver better advice, empowering investor success.”
Focus on Australia
This announcement comes weeks after Praemium said the sale of its international arm had entered the “final phase”.
The platform provider put the international operation on the market following a strategic review, as the company wants to focus on its domestic market in Australia.
Anthony Wamsteker, Praemium chief executive, said: “We are delighted Morningstar, a global firm of outstanding stature has chosen to acquire our international business. Morningstar will bring its global footprint and investment scale to better serve the interests of international clients and better advance the career opportunities of our international employees.”
