Xplan purchases PlanTech
Wealth management software provider Xplan has added risk analysis and analytics to its service package with its acquisition of PlanTech Consulting for $15 million.
The purchase will strengthen Xplan’s position as the leading independent planning software vendor, complementing its existing service suite, which includes portfolio management, customer relationship management (CRM), practice management and investment modelling.
“PlanTech is regarded as the industry benchmark for risk research and the strength of our integrated offering will provide dealer groups with the first genuine opportunity to access leading-edge investment and risk functionality simultaneously,” Xplan general manager Andrew Walsh said.
“Many of our clients use or seek the functionality of PlanTech Risk Researcher, and I am pleased they will experience efficiencies via this transaction,” he added.
The PlanTech service will be integrated into the Xplan offering from day one, and will replace Xplan’s current outsourced risk model.
In time, Xplan aims to deliver a more comprehensive integrated package and will eventually be looking to provide a web-based investments/risk solution for its clients.
The purchase price of $15 million will be made up of a $12 million upfront payment, and a further $3 million to be paid in one year’s time.
The move is expected to net accretive earnings for Xplan in the first year of operations and will provide cost savings to the group immediately, as PlanTech’s development of its own web-based CRM and investment planning modules can now be discontinued.
Xplan is also looking to expand its business opportunities in both New Zealand and South Africa by leveraging off PlanTech’s existing market presence in the two countries.
PlanTech managing director Tony Smith said: “PlanTech is excited to be in a position to deliver our clients the best of both worlds. We see the PlanTech and Xplan businesses as complementary across risk and investment, and combined they will more than satisfy the growing middle ground, with our day one integration pleasingly already in place.”
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