Allfunds, one of the world's leading B2B WealthTech platforms for the fund industry, said on 5 April that it has entered into an agreement to acquire the entire share capital of Web Financial Group, a European financial technology company and provider of software solutions to the wealth management sector.
The acquisition will significantly enhance Allfunds' customer proposition in digital & software solutions by gaining multi-asset and data capabilities, it said.
Allfunds strengthens its footprint in key markets where it already has strong positions: France, Germany, Spain, Sweden, Switzerland and the UK.
Allfunds will acquire WebFG for a total consideration of €145m, implying a multiple on revenues1 of 6.5x. The transaction will be funded through debt financing.
The deal is expected to close during Q2 2022.
Headquartered in Madrid, WebFG provides bespoke digital solutions for the wealth management industry by harnessing sophisticated data management, cutting-edge technology, and industry leading expertise refined over 20 years.
This technology will complement Allfunds' already strong digital offering including data & analytics which continue to bring efficiencies to the fund distribution ecosystem.
Allfunds will reinforce its platform with stronger functionalities in multi-asset capacities and new features in multi-data connectivity. With the integration of WebFG's technology, Allfunds will further bolster its tailor-made solutions available for the wealth management industry and progress towards an even more streamlined, efficient fund distribution ecosystem.
Allfunds will approach strategically the combined service offering and scalability for WebFG's existing client base, which includes retail banks, wealth managers, investment platforms and private banks.
As part of this investment, Allfunds will look to onboard the c.100 employees of WebFG which are located across six offices in Europe, further boosting its global footprint in key markets such as France, Germany, Spain, Sweden, Switzerland and the UK.
The addition of the WebFG team will strengthen Allfunds' digital expertise, further support its global infrastructure and enhance Allfunds' position as a leader in innovative WealthTech solutions.
Juan Alcaraz, Allfunds' founder and CEO, said: "At Allfunds, we are fully customer-centric and, with this in mind, we are always looking for growth opportunities that complement and broaden our offering.
"We wish not only to fulfill our clients' needs, but to anticipate them; the synergies, technology and talented WebFG team will, no doubt, strengthen our value proposition and help us deliver the world-class service we, at Allfunds, strive to provide."
Julio Bueso, WebFG's founder and CEO added: "It is exciting to become a part of the Allfunds business and I look forward to working together towards becoming an even stronger WealthTech champion. Our combined experience, expertise and synergies will reinforce Allfunds' technology, delivery and ultimately, service offering as a whole."
The transaction perimeter excludes the media business, which was carved-out in August 2021.
The transaction, which is subject to customary closing conditions, including if applicable, FDI screening approvals, will aim to close during Q2 2022.