Private-equity-backed Italian digital wealth management platform Moneyfarm has acquired London-based digital finance adviser Ernest.
The acquisition was financed exclusively via cash from Moneyfarm's balance sheet, unquote" understands, and comes as the Second Payment Services Directive (PSD2) regulation is due to come into effect across the EU and the European Economic Area in 2018. The norm requires banks to open their payments infrastructure and customer data assets to third parties that can then develop payments and information services to customers.
Following the bolt-on, Moneyfarm will expand its business across the personal finance chatbot market, incorporating artificial intelligence and conversational user interface to boost its product offering.
In November 2015, the company raised a €16m series-A round led by United Ventures, alongside Cabot Square Capital and Principia.
More recently, Allianz SE Ventures led a reported $7m series-B round for the business in September 2016.
Founded in 2016 and headquartered in London, Ernest focuses on personal finance chatbots and aims to help individuals manage their savings and investments.
Moneyfarm – Giovanni Daprá (co-founder, CEO).
Ernest – Niall Bellabarba (co-founder).
Catch up on essential news and features from this past week with our round-up of industry analysis
Sweden-based Hexagon, a specialist in Autonomous Connected Ecosystems (ACE) buys Spring
Previous owners Kay and Leo Strålin will reinvest part of the proceeds in the building materials retailer
Investment will fund the acquisition of Wales-based IT skills training business AgileSnap