Vox Markets Logo

Fintel completes £14.6m threesixty Services acquisition

07:17, 3rd July 2024
John Hughman
Vox Newswire

Following its announcement last week, Fintel (FNTL)Follow | FNTL has completed the acquisition of threesixty Services LLP, a leading provider of business support and compliance services. The purchase from abrdn plc brings 900  financial advisery and wealth management firms and 10,000 advisers into the Fintel stable. 

Neil Stevens, Joint CEO of Fintel, commented: "We are confident we can further enhance services for threesixty clients with joint investment in technology and will explore opportunities to make the benefits of our wider technology and data platform available over time."

Fintel paid £14.6m in cash for threesixty, which generated revenues of £6.5m in 2023. Based on the cash consideration, this gives an attractive revenue multiple of c.2.2x.


The View from Vox

The acquisition of threesixty Services further demonstrates Fintel's credentials as the go-to consolidator in retail financial services infrastructure.

That's important as the group continues to execute its strategy of building an end to end platform for the intermediary industry, underpinned by the latest technology, and follows a busy 2023 when it completed four important strategic deals. This is the fourth deal so far this year, and the eighth in 12 months foloowing the purchases of AKG, VouchedFor, Competent Adviser, Micap, Synaptic, Owen James, and ifaDASH. 

In May 2024, Fintel reported trading in line with management expectations, with strong cash generation and continued progress against its growth strategy. The group had a gross cash position of £10.6m as of April 30, 2024, net debt of £0.4m, and £69m of headroom within its £80m revolving credit facility, positioning it well to capitalise on further growth opportunities and its strong M&A pipeline.

We expect near-term growth to be driven by ongoing software adoption across Fintel's customer base, further penetration across the wider market, synergies from recent acquisitions, and more M&A. Growth may be further accelerated by structural drivers, including regulatory pressure, the FCA Consumer Duty, and robust demand for technology and data. Additionally, with interest rates set to adjust positively in 2024, Fintel is well-positioned to benefit from a recovery in the mortgage market.

We spoke to joint CEO Matt Timmins about Fintel's recent progress and growth strategy in this interview

Stock Chart | FNTL

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.