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Tech

Fintel makes double acquisitions worth more than £9m

The deals come as Fintel said pressures in the º£½ÇÊÓÆµ housing market were being largely offset by its progress in software license sales and acquisitions

Fintel has made four acquisitions this year.(Image: PA)

Financial technology group Fintel has made two acquisitions in deals worth a combined £9.1m.

The Huddersfield-based firm has bought VouchedFor - review site for financial advisers, mortgage advisers, solicitors and accountants - in a £7.5m cash deal with a further revenue-contingent sum capped at £10m, based on trading over the next two years. Fintel has promised to boost growth at VouchedFor, which is said to be break even after investment, having funded the acquisition mainly through its £80m revolving credit facility.

In an update to the London Stock Exchange, Fintel bosses said the reviews site's new "Elevation" product - a system that gives clients' private feedback to advisers - helps firms monitor consumer duty compliance and will complement its own offer.

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At the same time, Fintel's Defaqto business announced the acquisition of financial information and ratings specialist AKG. The £1.6m deal was funded from cash reserves and comes with a £400,000 contingent earnout based on certain trading in the first three years of ownership.

AKG provides independent assessments and ratings of financial strength for a range of financial services organisations. Fintel said it would use resources from across its group to invest in AKG and potentially break into new sectors.

Matt Timmins, joint CEO of Fintel, said: "Our positive trading momentum has continued into the second half, with continued growth in SaaS and Subscriptions revenues, supported by our resilient, diversified revenue base. VouchedFor and AKG are two market leading businesses which are highly complementary to our offering and share our vision. VouchedFor is the º£½ÇÊÓÆµ's standard bearer for Trusted Advice while AKG has been at the forefront of financial strength ratings and consultancy for over 20 years. Both have strong adjacencies in terms of our capabilities and customers, and we look forward to further developing their compelling growth prospects.