Nucleus finalizes the Glasgow purchase


Via Kristy Dorsey

After the completion of its £ 1.5 million acquisition of Glasgow-based OpenWealth, Nucleus Financial has posted better-than-expected business performance.

The financial technology company based in Edinburgh, which is itself in negotiations with two potential bidders, said that net inflows have risen to £ 388 million in the fourth quarter to date, with assets under administration (AUA) rising to £ 17.3 billion. It also committed to a new advisor network for its first business partnership.

As a consequence, Nucleus said both benefit and AUA “will exceed the board’s expectations.” for the year to the end of December.

Shares in the fintech business in Edinburgh are rising as potential investors stalk the company

The OpenWealth acquisition was completed on Dec. 10 and brought with it 130 staff, taking the overall headcount of Nucleus to around 380. The acquisition is expected to stabilize the cost base of the company, which, as AUA expands, will boost profit margins.

David Ferguson, founder and CEO of Nucleus, said he was ‘happy’ to close the deal.

“The acquisition is expected to be earnings accretive in 2021 and increasingly accretive in subsequent years,” he said. “I welcome the OpenWealth team to the Nucleus Group and look forward to working closely with them as we continue to grow the business.”

Fintech of Edinburgh acquires Glasgow business

No further news on the talks between Nucleus and the two potential bidders, IntegraFin, listed on FTSE-250, and Epiris, a London-based private equity house, was available. Earlier this month, both stated their interest in AIM-quoted Nucleus, sending shares in the Scottish business up to 192 pence.

Looking forward, Mr. Ferguson said that the positive momentum it had earlier this year before the collapse in inflows at the height of the pandemic had been restored by Nucleus. The company is now in the process of rolling out Nucleus IMX, its new portfolio service.

Yesterday, shares finished almost 3 percent higher, up 5p at 176p.


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