The Bravura Solutions Ltd (ASX: BVS) share price could be on the move on Tuesday after announcing a new acquisition.
What has Bravura announced?
This morning the provider of software solutions for the wealth management, life insurance, and funds administration industries announced the acquisition of FinoComp for $25 million.
According to the release, FinoComp is an Australian software company that builds unique, registry-agnostic and highly flexible software that supports the UK wealth market.
It provides software for data analytics, client reporting, performance reporting, and regulatory compliance built on a microservices architecture. FinoComp's clients include leading UK wealth management institutions, such as Aegon and Nucleus.
Management believes the acquisition deepens its technical capabilities, creating a compelling opportunity to deliver plug and play solutions to a broader addressable market.
Furthermore, it believes that a superior joint technology proposition opens up the potential to capture a greater share of technology spend from existing clients. It also offers significant cross-sell opportunities between FinoComp and Bravura clients.
In the future management sees further revenue opportunities by expanding FinoComp's software into adjacent markets and geographies. This includes financial advice, funds administration, and private client wealth management.
Bravura's chief executive officer, Tony Klim, said: "The combination of Bravura and FinoComp unlocks a strategically compelling opportunity for Bravura's marketleading technology to drive more of our clients' mission-critical operations. Combined with FinoComp's cutting-edge technology, the acquisition extends Bravura's wealth management offering."
This sentiment was echoed by Ray Tubman, the managing director of FinoComp.
He said: "Bravura has an outstanding reputation in the marketplace. We share common values and are delighted to join Bravura in the pursuit of delivering world-class solutions for our clients."
The transaction is expected to be completed by the end of October. The founders and senior management of FinoComp are expected to remain a core part of the business.
