Netwealth acquires ‘world first’ Aussie advicetech

Netwealth has confirmed it has completed its full acquisition of advice technology and analytics firm Xeppo, aligning, it says, with its longstanding data strategy and bolstering its expanding advice capability.

The ASX-listed wealthtech and wealth management firm confirmed to shareholders its acquisition of Xeppo in its FY24 report, rounding out its existing 25% stake in the firm.

The remaining share buy-out was completed for $8.1 million, which included the conversion of an existing $2.2 million loan from Netwealth into equity.

As Netwealth noted in the report, published in August, the acquisition aligns with its intentions to “reduce its reliance on 3rd part systems”, as well as build out its capabilities in data and emerging artificial intelligence (AI) technologies to “improve efficiency, productivity, and reporting”.

“[The] acquisition of Xeppo is a key component of our strategy which places data at the centre of everything we do. Xeppo is at the forefront of data management and analytics,” Netwealth wrote.

“Further integration of Xeppo capabilities to Netwealth accelerates our data strategy, aimed at delivering value to our clients through enhanced data and AI-driven capabilities.”

Netwealth said its acquisition would enable it to leverage a number of the advicetech’s unique in-market capabilities, including single view of client data, data auto-matching, reporting functions, built-in CRM, as well as emerging artificial intelligence (AI) capabilities.

One of the standout features of the Microsoft Azure-hosted platform is its open API-enabled integrations, enabling data to be drawn and consolidated in real-time from a multiplicity of business software suites (including popular platforms Xero, Iress, and MYOB). As well, third-party CRMs can also be integrated.

“Netwealth and Xeppo combined will offer wealth management firms the ability to unify client data and systems, which we believe is the cornerstone of any future-orientated advice practice and licensee,” said Netwealth chief executive and managing director Matt Heine.

 He added: “It is clear that the Xeppo solution has been designed not only for the professional firm of the future, but also the licensee of the future, who can now use a single source of data for increased oversight and governance and better understand risk.”

Founded in 2014, the Adelaide-based Xeppo spruiks its software as a “world-first”, and today counts more than 580 active users, including accounting, planning, SMSF and wealth firms, and 600,000 client entities.