
Digital wealth and advice platform InvestSMART Group (ASX:INV) has entered into a binding term sheet to sell its Intelligent Investor business to Teaminvest Private Group (ASX:TIP).
The total transaction consideration is valued at $16 million, subject to adjustments for prepaid subscriptions and other contractual liabilities associated with the business.
Under the terms of the agreement, TIP will acquire the Intelligent Investor website along with the management rights to its four exchange-traded funds.
Upon completion, Intelligent Investor is slated to operate as the retail-facing arm of TIP, integrating with the group’s existing wholesale and institutional value investing education, advice, and funds management offerings.
According to InvestSMART, the strategic rationale behind the divestment is to sharpen its corporate focus on its core InvestSMART-branded proprietary wealth platform, digital investment advice, and professionally managed accounts.
Management noted that the $16 million consideration crystallises value materially above the company's recent market capitalisation and share price.
At the time of reporting, the share prices of InvestSMART Group and Teaminvest Private Group were $0.085 and $1.16, respectively.