5 December 2023

Further strategic investment to expand capabilities

Acquisition of Synaptic Software

Fintel (AIM: FNTL), the leading provider of fintech and support services to the UK retail financial services sector, today announced that it has agreed to acquire Synaptic Software ("Synaptic"), an independent provider of financial adviser planning and research software.

Synaptic services over 1,600 financial advisers, providing due diligence research, compliance tools and software which streamlines customers' journeys. It has a highly regarded range of products, which allow advisers to realise efficiency benefits and generate better outcomes for their customers.

Fintel will acquire Synaptic via Fintel IQ, its technology and knowledge platform, further enhancing its capabilities, scale and IP. Under the terms of the acquisition, Synaptic is being acquired for a net upfront cash consideration of £3.5m, funded entirely from Fintel's existing financial resources with further £0.5m of development expenditure committed to enhance and integrate its products. The acquisition is expected to complete in the coming months, subject to regulatory approval. On completion, the business is expected to have annual revenues of c.£2.3m and be in a break even position.

The acquisition is 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. Synaptic is the fifth business acquired by Fintel this year, joining AKG, VouchedFor, Competent Adviser and Micap on our expanded platform.

Neil Stevens, Joint CEO of Fintel, commented:

"Synaptic is an established adviser software and research business which complements and extends our current capabilities, and offers us positive synergistic opportunities for growth and value in the near term. This transaction will further cement our central market position as the provider of technology, research and consulting services to the adviser market. We are committed to investing in Synaptic, developing its standalone products and bringing the Webline integration to Defaqto Engage as high priorities, as we continue to enhance our offering and create better outcomes for all."

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“We are confident of delivering further progress in the year ahead, with our extensive platform positioning us strongly to capitalise on the multiple growth opportunities available in a fragmented retail financial services market.”

Matt Timmins, Joint CEO

 

"Defaqto Matrix 360 is an industry first, game changing tool that helps our partners make smarter product decisions through a single source of market intelligence and without the requirement of specialist skills in data science and AI.

"Integrating the UK's leading product ratings and insurance database with intelligent, predictive analytic tools, it's the only place to get the bigger picture."

John Milliken, CEO Defaqto

"We are investing into fintech businesses, building a connected platform of solutions for intermediaries to use with their clients."

"The increasing regulation, the demand for integrated technology and the demand for data are the real tailwinds behind the business model. "

Matt Timmins, Joint CEO