Moneyfarm strikes deal to fully-acquire digital advice platform Profile Pensions
Online investment adviser Moneyfarm has agreed to fully acquire digital pensions planner Profile Pensions as it pushes forwards with efforts to expand its client base and services offerings.
The cash-and-shares deal for an undisclosed sum will see Moneyfarm’s shareholders finance a 100 per cent takeover of the Preston headquartered pension adviser, as it seeks to capitalise on the UK’s £680bn pensions sector.
Pensions consolidator Profile Pensions currently has 24,000 customers and around £870m worth of assets under management (AUM).
The deal will bring Moneyfarm’s AUM to £3.3bn in giving it responsibility for more than 115,000 customers.
It comes after Moneyfarm secured £44.1 worth of investment in January from City investment firm M&G, in a deal that valued the Milan headquartered fintech company at £350m.
Founded in 2012, Moneyfarm launched its own self-invested private pension (SIPP) platform in 2018, which offers various portfolios based on users’ own risk and wealth profiles.
The Profile Pensions deal will see London-based investment fund Smedvig Capital become a minority shareholder in Moneyfarm.