Chief executive Matt Heine says Netwealth’s latest move will help advisers “engage with the next generation of investors”.
Netwealth has provided further details on its acquisition of “pioneering digital financial education platform” Flux Corp, which it initially announced in its September quarter ASX results filing last week.
The company agreed to acquire 100 per cent of the shares in enterprise software company Flux on 9 October for an upfront consideration of $2.5 million. The firm produces financial tools and content for the emerging mass and emerging affluent markets, which Netwealth said were designed to simplify complex financial concepts and make learning about money “fun and impactful”.
According to Netwealth CEO and managing director Matt Heine, the deal will have benefits for advisers looking to take advantage of the upcoming intergenerational wealth transfer.
“We are thrilled to welcome Flux to the Netwealth family. This acquisition is a natural fit for us as we continue to expand our capabilities and reach,” Heine said.
“As part of the intergenerational transfer of wealth across Australia, which many believe to be more than $3 trillion over the next 10-15 years, it is crucial for us to equip our adviser and licensee network with the tools to engage with these new segments effectively.
“Flux’s innovative approach to financial education will enable us and our advisers to engage with the next generation of investors in meaningful ways.”
Flux, including its “flagship” app, covers topics ranging from budgeting and saving to investing and retirement planning, while also providing “Win the Week” challenges to users.
“These challenges encourage participants to take small, manageable steps towards better financial health, fostering a sense of community and accountability,” Netwealth said.
“Each week, participants receive practical tips and tasks designed to help them make smarter financial decisions and build lasting habits.”
Flux CEO Brent Joffe said that joining Netwealth represented an exciting opportunity for the business.
“Our mission has always been to make financial literacy accessible and enjoyable for all Australians,” Joffe said.
“By leveraging technology, Flux looks to make financial education accessible to everyone, regardless of their background or financial situation.”
He added: “With Netwealth’s support, we can amplify our impact and reach even more people. We look forward to working together to help Australians wish their wealth and secure their financial futures.”
The deal follows Netwealth’s earlier acquisition of data management and analytics platform Xeppo, which was completed on 12 August for $5.9 million in cash consideration and a $2.2 million loan from Netwealth to Xeppo that was converted to equity.
Commenting on the deal, Heine said the acquisition of Xeppo aligns with the firm’s strategic goal of placing data “at the heart of everything we do”.
“Xeppo is at the forefront of data management and analytics and by adding the Xeppo capabilities to Netwealth, it accelerates our strategy and prepares us even better for an AI-driven future,” he said.
Furthermore, Heine said the integration of the two platforms would allow wealth management firms to “unify client data and systems”, which Netwealth believes is the “cornerstone of any future-orientated advice practice and licensee”.
In its recent ASX update, the company said it has made “significant progress” in integrating data Xeppo and is looking to explore further opportunities for growth.
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