Netwealth Group buys Paradino for up to $29M
- Netwealth Group agreed to acquire 100% of Paradino for an upfront cost of $20 million, plus up to $9 million in earn-out payments.
- The transaction is not expected to have a material impact on Netwealth's near-term earnings.
- Netwealth plans to invest $10 million over two years to accelerate product roadmap delivery and expand AI capabilities.
Netwealth Group (ASX:NWL) has agreed to acquire 100% of AI-enabled advice platform Paradino for an upfront consideration of $20 million.
The takeover deal complements Netwealth's existing software systems by automating several time-intensive advice workflows for financial advisers.
Matt Heine, CEO and Managing Director of Netwealth, said, "This acquisition expands Netwealth's capability beyond platform administration into key advice workflows, increasing our support for advisers across a larger part of the advice process."
The acquisition consists of $15 million in cash and $5 million in Netwealth ordinary shares, with up to $9 million in milestone-based earn-outs over four years.
Paradino currently supports more than 500 financial advisers and generates annual recurring revenue of $1.6 million.
Following the announcement, the Netwealth Group share price was down at $18.84.
Netwealth stated that the purchase directly supports its Dx30 ambition by improving financial adviser productivity.
The company also committed to investing a further $10 million into Paradino over the next two years.
