Fintech company Bravura Solutions has announced its plans to acquire UK-based software company Delta Financial Systems for a consideration of $41.5 million. The acquisition has been funded through its existing cash reserve and is expected to be earnings per share accretive in FY21.
Why Bravura acquired fintech Delta
According to a statement by Bravura’s management, the acquisition broadens the financial service provider’s product suite. Moreover, the consensus is that Delta’s products are a natural extension to Bravura’s core offering Sonata. They will expand Bravura’s ecosystem of products and services. The takeover will also provide an excellent opportunity to cross-sell Bravura’s other products to Delta’s client base.
A statement issued by Bravura’s CEO, Tony Kim, showcased his delight that Delta is joining Bravura. Kim claimed that both businesses have complementary products. These products can provide a compelling offering to support the mission-critical operations of wealth management firms across the UK.
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About Delta Financial Systems
Delta Financial Systems offers technology that helps power complex pensions administration in the United Kingdom market. It supports the administration of self-invested personal pensions (SIPPs) and Small Self-Administered Schemes (SSASs). This includes the complete range of complex client drawdown options that are available under the pension freedoms legislation. Currently, Delta’s technology supports the needs of over 30 UK clients and has generated pro forma revenue of 6 million pounds in FY 2020. The company is predicted to reach revenue growth in the range of 20-30% this year, with margins that are similar to Bravura’s Wealth Management segment. Since the news of the acquisition began making rounds, shares in Bravura Solutions are trading 5.6 per cent higher at $3.57.
Michael Power, Delta’s CEO said he’s looking forward to working with Bravura. He believes that Bravura is a leader in the UK’s wealth management marketplace and that Delta’s products fit perfectly with Bravura’s offerings. A statement released by the company said that the Delta management team is keen on working with Bravura in order to deliver outstanding service to both companies’ clientele. The acquisition is expected to be complete by the end of October 2020, subject to approvals and regulations.
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