Fintech vendor Bravura acquires financial SaaS provider Midwinter for $50m

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Fintech vendor Bravura acquires financial SaaS provider Midwinter for $50m

ASX-listed financial software vendor Bravura Solutions has acquired financial planning software-as-a-service provider Midwinter for $50 million.

Sydney-based Midwinter develops the financial planning software AdviceOS, which offers back office administration for financial advisers and self-directed digital advice portals for superannuation funds.

In the ASX announcement (pdf), Bravura said AdviceOS is a “natural extension” to its existing software solutions and client base, as well as another avenue for expansion in Australia, the United Kingdom and more.

Bravura chief executive Tony Klim said, “The Midwinter team have built a strong, highly functional and well-regarded cloud-based SaaS application for the financial advice market.”

“Midwinter’s modern technology offering complements and extends Bravura’s broad suite of products in both Australia and internationally.”

A Bravura spokesperson told CRN the acquisition represents "a long-term strategic growth opportunity" for Bravura in "an adjacent and attractive market".

"Bravura recognises the importance of providing Australians with access to financial advice. This acquisition enables us to actively support clients and advisers achieve this," the spokesperson said.

The transaction is expected to be completed within August 2019 pending certain customary conditions and some key personnel arrangements. Midwinter’s founders and senior management will remain a core part of the business.

Bravura also reported its FY2019 results, with product sales driving revenue and profit growth.

Revenue for the year ended 30 June 2019 came in at $257.7 million, up 16 percent from $221.5 million the previous year. Net profit after tax is $32.8 million, up 21 percent from $27 million in FY2018. EBITDA is also up 27 percent while margins also increased from 17.4 percent to 19 percent.

On a per segment basis, Wealth Management revenue is up 14 percent to $176.8 million, while Funds Administration revenue is $80.9 million, up 22 percent from $66.4 million.

“Bravura has again achieved an outstanding set of full year results,” Tony Klim said.

“The FY19 result was driven by robust demand across the Bravura product suite combined with operating leverage expansion. We have seen continued and significant project work from our existing client base, in addition to several new contract wins.”

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