- Finance advisory firm, Centrepoint Alliance (CAF) has entered agreements to purchase an industry-leading financial planning software provider, Enzumo, for $1.5 million
- For the deal to be completed, some conditions still need to be met, which are expected to be satisfied by mid-June
- Enzumo is known for its financial planning software consulting, customisation and implementation across Australia
- Enzumo’s year-on-year revenue grew to $1.3 million in the first half of FY20 -a 34 per cent increase from the entire FY19
- Both Centrepoint and Enzumo will continue to support advisors, as there will be no immediate change to either business model
- Centrepoint is up 18.8 per cent on market close, selling shares for 9.5 cents each
Centrepoint Alliance (CAF) has entered agreements to purchase industry-leading financial planning software provider, Enzumo, for $1.5 million.
For the deal to be completed, some conditions still need to be met, which are expected to be satisfied by mid-June.
Enzumo is known for its financial planning software consulting, customisation and implementation across Australia, and provides services to more than 2200 Xplan users nationally.
The Xplan technology is a financial planning and wealth management software for the financial services industry. The business is compromised Enzumo Corporation and Enzumo Consulting, from Chant West Holdings (CWL).
Enzumo’s year-on-year revenue grew to $1.3 million in the first half of the 2020 financial year, which is a 34 per cent increase from the whole of the 2019 financial year.
Both Centrepoint and Enzumo will continue to support advisors, as there will be no immediate change to either business model.
Centrepoint CEO Angus Benbow said he is pleased to welcome Enzumo to the team.
“We already provide services to some of Enzumo’s largest clients, and Centrepoint Alliance’s support for both self-licensed advisers and licensees make Enzumo’s technology solutions a natural complement to our advice and business services,” he said.
“Acquiring Enzumo will accelerate the transformation of our business model to focus on scalable, recurring subscription fee revenue,” he added.
Chant West Holdings CEO Brendan Burwood said Centrepoint is the “natural owner of the Enzumo business” and believes this is the best for all shareholders.
“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,” he told the market.
Centrepoint is up 18.8 per cent on market close, selling shares for 9.5 cents each.