In a move to further expand a holistic advice offering, platform provider HUB24 has acquired tech integration service myprosperity.
Myprosperity provides portals for accountants and financial advisers, which integrate investment and practice management systems that can also be accessed by clients. Through this access, clients can directly feed into the fact-find process and engage in other ways through the advice process.
HUB24 plans initially to integrate myprosperity with its custodial and non-custodial platforms, with the development of a single client portal planned for the entire suite of HUB24’s products and services.
HUB24 chief executive Andrew Alcock tells Professional Planner the acquisition is about “accelerating” the platform provider’s business strategy to become a holistic advice technology service.
“We know advisers are looking for ways to reduce friction, increase efficiency and understand a client’s full position, in terms of their wealth,” Alcock says.
“The myprosperity acquisition really is about accelerating some of our strategies about how we help people get a single view of wealth.”
Alcock says the role of platforms is to bring assets together for a client, but because some assets are held off platform this creates further complications for advisers.
“How do you bring that together, so you have the right client engagement and the right experience? That’s the aim with the acquisition.”
Research released in February by Investment Trends and Finura Group noted the willingness of platforms to broaden their functionality and offer more services.
At the same time, Iress has divested from its own platform service which it acquired from OneVue, to stay neutral in the space amid the expansion of its Connectivity Network.
The latest Adviser Ratings landscape report found HUB24 led the way in every category it measured the performance of platforms, similarly it was also top spot in the Investment Trends platform benchmarking report earlier this year.
Separate under one roof
The myprosperity service will continue to function as a separate business unit, retaining the same brand and leadership team, but sharing services with HUB24 as well as being incorporated under HUB24’s platform segment for financial reporting.
The deal is collectively worth $40 million for myprosperity shareholders with a further $11.5 million available based on business performance targets being met.
Alcock says it was a clear decision to target an established, market-leading provider rather than attempt to build out the function themselves.
“To integrate it into HUB24 it helps us round out that strategy faster and provider greater outcomes for clients and advisers faster than us spending a long time building it,” Alcock says.
“It makes sense to buy the asset, integrate it further and keep going on our journey to deliver better outcomes.”
HUB24 has made multiple acquisitions over the last couple years including SMSF service Class and rival platform Xplore Wealth. In terms of future acquisition plans, Alcock says “never say never”.
“We’re not shy; if there’s something that makes sense we’ll do that, but we’re really excited about how this starts to bring together a lot of the assets we already have in the stable,” Alcock says.
“It allows us to stich them together and create a single front end access for clients of those multiple systems together. Right now, we’re really comfortable with the portfolio we’ve got, but our eyes are always open.”
