Global investment group Carlyle has agreed to acquire intelliflo, the London-based provider of cloud-based practice management software for independent financial advisers, from Invesco.
The transaction, valued at up to $200m, comprises an initial payment of $135m on completion – expected in the fourth quarter of this year subject to closing conditions – with a further $65m in potential earn-outs.
Founded in 2004, intelliflo supports more than 30,000 professionals at around 2,600 advisory firms, overseeing some £450bn of client assets. Its SaaS platform provides client relationship management, planning, onboarding, compliance and reporting tools, and integrates with more than 120 third-party applications.
The deal also covers intelliflo’s US subsidiaries, including RedBlack, a provider of rebalancing tools, and intelliflo Portfolio, which supports US registered investment advisers. Under Carlyle’s ownership these will be separated into a standalone business, RedBlack, led by chief executive Bryan Perryman, focusing exclusively on the US market. Intelliflo will continue to concentrate on the UK and Australia.
Equity for the investment will be drawn from Carlyle Europe Technology Partners V, a €3bn fund specialising in European technology businesses.
Fernando Chueca, managing director in the CETP advisory team, said intelliflo was “a mission-critical software provider to the UK’s wealth management ecosystem, with a deeply embedded and loyal customer base”.
Nick Eatock, intelliflo’s founder and chief executive, said Carlyle’s backing would allow the business to “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”.
Doug Sharp, senior managing director at Invesco, said both intelliflo and RedBlack were “well-positioned for continued success and innovation in the wealth technology space”.
Advisers to the transaction included Evercore for Invesco and Gibson Dunn for Carlyle.
