Carlyle Group to Acquire intelliflo from Invesco for $200 Million, Strengthening Wealthtech Presence

The Carlyle Group has agreed to buy intelliflo from Invesco for $200 million. intelliflo is a financial software provider that supports over 30,000 professionals across 2,600 advisory firms, managing approximately £450 billion in client assets. The acquisition includes intelliflo's cloud-based practice management software in the UK and its US subsidiaries, which cover RedBlack and intelliflo Portfolio, serving Registered Investment Advisors. Carlyle plans to accelerate its growth in wealthtech across the UK, the US, and Australia.

Carlyle Group has agreed to acquire intelliflo from Invesco for up to $200 million, marking a significant move in the wealth technology sector. The acquisition includes intelliflo's cloud-based practice management software in the UK and its US subsidiaries, RedBlack and intelliflo Portfolio, serving Registered Investment Advisors (RIAs).

Founded in 2004 and headquartered in London, intelliflo provides market-leading practice management software to over 30,000 professionals across 2,600 advisory firms, managing approximately £450 billion in client assets. The acquisition aims to strengthen intelliflo's market-leading position in the UK and accelerate its growth in Australia.

As part of the deal, intelliflo's US-based subsidiaries will be established as a standalone business called RedBlack, run by a separate management team. This separation will allow both businesses to better serve and focus on their existing customers and markets. intelliflo will focus on delivering market-leading software for the UK and Australian markets, while RedBlack will concentrate on advisers in the United States.

Equity for the investment will be provided by Carlyle Europe Technology Partners (CETP), a €3 billion fund which invests in technology companies across Europe. The purchase price is comprised of $135 million at closing, expected in the fourth quarter of this year subject to certain closing conditions, and up to an additional $65 million in potential future earn outs.

Nick Eatock, CEO and Founder of intelliflo, said, "This is an exciting moment for intelliflo. Carlyle's investment reflects its trust in our business, and its deep experience in scaling software companies make it an ideal partner for our next phase of growth. With Carlyle's support, we will continue to focus on delivering great value to our clients, with a renewed focus on building innovative solutions for the evolving needs of our core UK and Australian customer bases."

Fernando Chueca, Managing Director in the CETP investment advisory team, said, "Intelliflo is a mission-critical software provider to the UK's wealth management ecosystem, with a deeply embedded and loyal customer base. We are excited to partner with Nick, Bryan, and the team to unlock the company's full potential and deliver a new stage of growth."

Doug Sharp, Senior Managing Director, Head of Americas and EMEA, at Invesco, said, "As intelliflo and the newly incorporated RedBlack embark on their next phases of growth with Carlyle, we are confident that both companies are well-positioned for continued success and innovation in the wealth technology space. We look forward to our continued relationship with intelliflo and RedBlack through our common interaction with wealth advisor clients."

The acquisition is expected to close in the fourth quarter of this year, subject to certain closing conditions. Evercore served as financial advisor to Invesco, and HSF Kramer acted as legal adviser. Altman Solon, PWC, Oliver Wyman, and Ringstone conducted due diligence on the acquisition, while Gibson Dunn acted as legal counsel to Carlyle.

References:
[1] https://www.prnewswire.com/news-releases/carlyle-to-acquire-intelliflo-from-invesco-302538062.html
[2] https://www.ainvest.com/news/carlyle-group-acquires-intelliflo-invesco-200-million-2508/