Morningstar is to acquire wealth management platform provider Praemium’s UK and International Business
Morningstar reached an agreement with Praemium Limited to acquire 100% of the Australian company’s operations in the United Kingdom, Jersey, Hong Kong, and Dubai, for a cash sum of £35 million (subject to completion adjustments).
Announcing the deal, Daniel Needham, president of wealth management solutions for Morningstar, said: “Praemium has a fast-growing UK and international business and a talented team we look forward to welcoming to Morningstar.
“Technology is playing a larger role in everyone’s lives and expectations for how companies deploy it are evolving quickly. Advisers and the investors we jointly serve are no exception, and Praemium’s digital-first capabilities will allow us to reduce friction, lower costs, provide more choice, and improve efficiency for advisers. This gives advisers time back to deliver better advice, empowering investor success.”
Praemium UK and International managing director Mark Sanderson said the focus throughout the deal process had been on “finding a new owner that is the right fit for us and the right fit for our customers. We wanted a committed parent with a long-term view and the resolve to uphold our best-in-class platform experience, free from customer disruption. We were looking for the enthusiasm and drive to continue the Praemium growth story. We know with this proposed deal with Morningstar, we can confidently say we have found the perfect fit.”
The acquisition comes at a time when wealth management platforms are experiencing significant growth. According to The Lang Cat, platform assets in the UK have doubled in the last five years exceeding £500 billion, driven by adviser demand for scalability, digitisation, and portfolio flexibility.
Completion of the Transaction remains subject to regulatory approval from the Financial Conduct Authority in the United Kingdom and the Jersey Financial Services Commission in Jersey, and other customary conditions. Morningstar and Praemium expect to complete the transaction during Q2 or Q3 2022.
