SimplyBiz and Defaqto parent company Fintel has bought adviser review site VouchedFor in a deal worth £7.5m.
It has also bought insurer and investment platform ratings agency AKG for a potential £2m.
VouchedFor and AKG mark the third and fourth acquisitions by the company this year, following the acquisitions of Competent Adviser and Micap in July.
VouchedFor is a review site for financial advisers, mortgage advisers, solicitors and accountants, serving over 5,000 intermediary customers.
The business is currently break-even after a period of investment, the firm said.
Completed ithis month, the larger of the two acquisitions was part debt funded with a net upfront cash consideration of £7.5m, of which £6.5m was drawn from the company’s £80m revolving credit facility.
Following the acquisition, its leadership and team will remain in place and work alongside the Fintel management team to play a crucial role in significantly expanding the reach and services of VouchedFor, the firm said.
“The strategic acquisition will broaden Fintel’s services to the advice market through its technology and regulatory services platform.” Fintel added.
AKG to work with Defaqto
AKG is a provider of independent assessments and ratings of financial strength for a range of organisations including life companies, and will link up with Defaqto.
The transaction was funded entirely from cash reserves with a net upfront cash consideration of £1.6m.
In addition, up to £400,000 contingent earnout is based on certain trading criteria being delivered in the first three years of ownership.
“The acquisitions are in line with Fintel’s strategy to improve the retail financial services market, promote the value of financial advice and increase consumer confidence and trust,” it said.
‘Strong M&A pipeline’
Matt Timmins, joint CEO of Fintel, said the firm had seen continued growth in subscriptions revenues during the second half of the year and that it had a “strong M&A pipeline”.
“VouchedFor and AKG are two market leading businesses which are highly complementary to our offering and share our vision,” he said.
“VouchedFor is the UK’s standard bearer for trusted advice while AKG has been at the forefront of financial strength ratings and consultancy for over 20 years.
“Both have strong adjacencies in terms of our capabilities and customers, and we look forward to further developing their compelling growth prospects.“
Commenting on the AKG purchase, Defaqto CEO John Milliken said: “AKG is a strategically significant acquisition, adding industry expertise, insight and data that is complementary to Defaqto’s.
“We very much look forward to working with the talented team at AKG to invest in the business and make it an even greater success in the future, enabling more people to make smarter financial decisions.”
Alex Whitson, managing director of VouchedFor, added: “I am thrilled that we have found a partner who shares our commitment to championing the value of advice – a mission that is crucially important.
“Fintel’s investment will enable us to accelerate our growth, launch more services for advisers, and enhance our client offering.”