GCIFintel to acquire RSMR, enhancing position in UK fund research and ratings market
() , a provider of fintech and support services to the UK financial sector, announced the conditional acquisition of fund ratings and research agency Rayner Spencer Mills Research (RSMR). Fintel will acquire RSMR via Defaqto, its Fintech and Research division. The acquisition is expected to complete in the coming months, subject to regulatory approval.
Fintel said the acquisition was in line with its strategy to expand into adjacent markets, adding scale, IP, and datasets to its offerings. RSMR will be the 9th business acquired by Fintel over the past 12 months, joining AKG, VouchedFor, Competent Adviser, Micap, Synaptic, Owen James, ifaDASH, and threesixty on its expanded service and technology platform.
Matt Timmins, Joint CEO of Fintel, commenting:
"RSMR's fund ratings and portfolios are trusted by over 15,000 advisers across the UK. Utilising a rigorous research methodology, their ratings are a badge of quality, due diligence and reputation. RSMR is another strategically important acquisition, adding industry expertise, insight and data that is complementary to Defaqto's.
I have worked with Ken, Geoff and the team at RSMR for a long time and hugely admire their research methodology, independence and dedication to the market. Their history, pedigree and ambition will add significantly to our business and I am delighted that RSMR have chosen Defaqto and Fintel to support the next stage of their growth."
View from Vox
Fintel announces the conditional acquisition of RSMR, one of the most recognised fund ratings and research agencies in the UK. The acquisition will benefit Fintel's Defaqto, a leading provider of financial information, ratings and fintech, enhancing its fund research and ratings products and services. By now investors are used to acquisition announcements from Fintel as the company's aggressive M&A strategy has resulted in 9 additions over the last 12 months.
Four significant acquisitions were completed in FY23, plus five more since the beginning of FY24 (see here and here) not counting today's announcement, bolstering steady EBITDA growth of 5.6% and core revenue growth of 11.8% reported for FY23. 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 M&A opportunities.
Trading so far in FY24 remains in line with expectations, with growth in fintech software revenue and software license sales offsetting pressures in the UK housing market. Additionally, with interest rates set to adjust positively in 2024, Fintel is well-positioned to benefit from a recovery in the mortgage market. With a strong balance sheet, plenty of headroom in its credit facility, and strong cash generation, Fintel is well-positioned for continued expansion.
We expect near-term growth to be driven by ongoing software adoption across '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.
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