SMSF tech provider Class Limited has acquired an advice compliance and documentation fintech as part of its strategy to expand across the professional services ecosystem.
Class Limited will pay a total of $25 million for NowInfinity, which will be partly funded by a new $10 million debt facility, with the remainder to be funded by existing cash, according to a statement.
The purchase consideration will be structured with $10 million upfront cash payment as well as $10 million in Class shares, escrowed for two years, to be issued on completion.
In addition, the agreement also includes deferred consideration payments of $5 million contingent on successful integration.
Class said the NowInfinity business will continue as a standalone operation as it integrates the business, with no impact on its clients or sales process.
It is the first complete acquisition by Class, noting that it forms parts of its “Reimagination” strategy.
Class chief executive Andrew Russell said the acquisition of NowInfinity is an attractive opportunity that allows the company to expand its role across the professional services ecosystem.
“We are constantly looking for new opportunities to grow and this acquisition is complementary to the Class business in terms of culture, technology and customer base,” Mr Russell said.
NowInfinity chief executive Amreeta Abbott said it has been deeply passionate and focused on solving pain points for accountants, financial planners, bookkeepers and lawyers through its platform.
“We are excited about the opportunity this transaction creates that sees two market leaders leveraging each other’s strengths, enabling NowInfinity’s ability to continue to innovate and grow with our members," Ms Abbott said.
The big four bank has estimated it will be paying around $8 million to around 8,...
FASEA has conceded that its code of ethics is difficult for compliance managers ...
The majority of claims made under retail life insurance policies are now able to...