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Scottish fintech Nucleus acquires OpenWealth for £1.5 million

Source: Nucleus

Nucleus Financial Group has entered into a binding agreement to acquire the UK business and assets of Genpact Wealth Management UK Limited (which operates under the trading name OpenWealth) as they pertain to Nucleus for a total cash consideration of £1.5 million.

Completion is expected to take place by the end of the year. In November 2018 Nucleus unbundled its technology arrangements from OpenWealth, contracting directly with Bravura Solutions (UK) Ltd.

The acquisition is the next step in the Company’s journey to have increased control over its processes, service offering and product development while continuing to licence its core Sonata software from Bravura.

Based in Glasgow, OpenWealth has provided business process outsourcing (BPO) services to the Company since 2011, including account servicing and administration.

The board of Nucleus believes that the Acquisition of the assets that pertain to Nucleus will allow the Company to:

further accelerate its product development and automation programme,
provide scope to enhance the level and efficiency of its offline service,
create new growth opportunities for its people, and
accelerate the expansion of its operating margin as it grows AUA.

The acquisition is expected to be earnings enhancing in 2021 before becoming increasingly accretive thereafter.

David Ferguson, founder and chief executive of Nucleus, commented: “Nucleus has continued to grow in recent years, and we expect the greater control afforded by the Acquisition to further strengthen our positioning as we pursue our goal of being the most tech-enabled wrap platform in the UK.”

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