US firm set to snap up intelliflo from Invesco for $200m

Cloud-based practice management software provider intelliflo, which predominantly services independent financial advisers in the UK, includes US-based subsidiaries RedBlack, a software-as-a-service-based portfolio rebalancing tool provider, and intelliflo Portfolio, a portfolio management solution software.

This acquisition announcement comes a day after intelliflo was announced as a new partner for My Dealer Solutions, providing the self-licensing solution with digital client engagement software.

As part of the transaction, intelliflo’s US subsidiaries will be established as a single stand-alone business under the RedBlack name, which will then be run by a separate management team. According to Carlyle, this separation will allow “both businesses to better serve and focus on their existing customers and markets”.

As a result, intelliflo will focus solely in delivering software and solutions for its UK and Australian markets, with RedBlack focusing on delivering RIAs for its US-based financial adviser customer base.

“Carlyle will support the carve-out of both businesses from Invesco and partner with both leadership teams to execute their respective growth initiatives,” the company said.

Carlyle Europe Technology Partners (CETP), a €3 billion fund that invests in technology companies across Europe, will facilitate the transaction.

“The transaction aims to strengthen intelliflo’s market-leading position in the UK and accelerate its growth in Australia,” the firms said.

Already assisted by their recent partnership with MDS, intelliflo has also targeted the mergers and acquisitions market, launching a suite of new data platforms in May.

“We know our customers are seeking a seamless overview of their business performance and our new income dashboards provide that at the touch of a button, which will be key for practices looking for growth or investment,” Stu Alsop, director of sales at intelliflo Australia said at the time.

Speaking on the benefits of this upcoming acquisition, Nick Eatock, CEO and founder of intelliflo, said: “This is an exciting moment for intelliflo. Carlyle’s investment reflects its trust in our business and its deep experience in scaling software companies make it an ideal partner for our next phase of growth.

“With Carlyle’s support, we will continue to focus on delivering great value to our clients, with a renewed focus on building innovative solutions for the evolving needs of our core UK and Australian customer bases.”

Fernando Chueca, managing director in the CETP investment advisory team, stated: “intelliflo is a mission-critical software provider to the UK’s wealth management ecosystem, with a deeply embedded and loyal customer base.

“We are excited to partner with Nick, Bryan and the team to unlock the company’s full potential and deliver a new stage of growth.”

The purchase price of up to $200 million is comprised of $135 million at closing, which is expected in the fourth quarter of this year subject to certain closing conditions, and up to an additional $65 million in potential future earnouts.