Australian financial services platform and broker Centrepoint Alliance has flashed the cash to walk away with well-regarded specialist software house Enzumo, picking up the planning programmers for a neat $1.5 million – a bargain basement price.
The deal, revealed to the ASX on Monday morning, will accelerate Centrepoint Alliance’s “development of a scalable, recurring fee-based revenue model” according to the buyer.
While it’s a sure sign that end users are increasingly prepared to buy software suppliers outright if they see an upside, its also a testament to the fact that bolt-on tech acquisitions are not as easy as they look on paper.
Founded in Brisbane in 2004 and with offices on Australia’s east coast, Enzumo has over the last 15 years carved out a solid niche making systems for financial planners and wealth managers that plug into the local investment industry’s stalwart platform XPLAN, created by Australia’s original hardcore markets fintech Iress.
Centrepoint Alliance described Enzumo as “Australia’s leading Xplan customisation group” saying it had “developed an industry-leading reputation and capability in consulting and customisation of Xplan.”
Enzumo had been owned by fellow ASX-listed research and data provider Chant West, a fit that was arguably not ideal given the cultural and operational differences between the superannuation and financial planning industries.
“Centrepoint Alliance is a natural owner of the Enzumo business, and this transaction represents the best outcome for all stakeholders,” said Chant West Holdings chief executive, Brendan Burwood.
“Enzumo and Centrepoint Alliance share a culture that is focused on providing the services and support that financial advice firms need to provide great advice to their clients”.