Carlyle Group Acquires Intelliflo for Up to $200 Million, Boosting UK and Australian Presence

Carlyle Group (CG) is acquiring Intelliflo, a cloud software provider, for up to $200 million. This deal aims to enhance Carlyle's presence in the UK and expand its reach in Australia. Analysts predict an average target price increase of 5.95% for CG, with a consensus rating of "Outperform." The GF Value estimates a slight downside of 1.98% from the current market price.

Carlyle Group (CG) has announced the acquisition of Intelliflo, a leading provider of cloud-based practice management software for independent financial advisors (IFAs) in the UK, for up to $200 million. The deal aims to strengthen Carlyle's presence in the UK and expand its reach in Australia. The transaction includes Intelliflo's US-based subsidiaries, RedBlack and intelliflo Portfolio.

Intelliflo's platform offers a comprehensive suite of services, including CRM, financial planning, client onboarding, compliance workflows, and reporting functionality. Its cloud-native, multi-tenanted SaaS architecture integrates with over 120 third-party applications, supporting approximately £450 billion in client assets. The acquisition will allow Carlyle to leverage Intelliflo's market-leading position in the UK and accelerate its growth in Australia.

The purchase price of up to $200 million is comprised of $135 million at closing, expected in the fourth quarter of this year, and up to an additional $65 million in potential future earn-outs. Equity for the investment will be provided by Carlyle Europe Technology Partners (CETP) V, a €3 billion fund that invests in technology companies across Europe.

Fernando Chueca, Managing Director in the CETP investment advisory team, commented, "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."

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, making it an ideal partner for our next phase of growth."

Bryan Perryman, the CEO of the newly formed RedBlack, said, "Our team is highly motivated by the opportunity to bring our full focus onto the US market as an agile, standalone company. RedBlack has a rich history of delivering market-leading software solutions for our US RIA customer base. We are excited to be backed in this endeavor by a sponsor with the reputation and credentials of Carlyle."

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."

Analysts predict an average target price increase of 5.95% for CG, with a consensus rating of "Outperform." The GF Value estimates a slight downside of 1.98% from the current market price.

References:
[1] https://www.prnewswire.com/news-releases/carlyle-to-acquire-intelliflo-from-invesco-302538062.html
[2] https://www.ainvest.com/news/carlyle-strategic-acquisition-intelliflo-implications-future-wealth-management-2508/