United Venture's Moneyfarm buys Ernest
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.
Previous funding
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.
Company
Founded in 2016 and headquartered in London, Ernest focuses on personal finance chatbots and aims to help individuals manage their savings and investments.
People
Moneyfarm – Giovanni Daprá (co-founder, CEO).
Ernest – Niall Bellabarba (co-founder).
More on Portfolio management
Gimv exits Eurocept homecare division
Exit has no significant impact on the net asset value of Gimv as of 31 March 2020
Vista-backed Finastra acquires Doorr
Vista formed Finastra through the merger of its portfolio company Misys with D+H, a Canadian fintech group
Five Arrows, TA-backed RLDatix acquires Verge Health
Verge Health's Mt Pleasant-based management team will stay on following the transaction
Hg-backed Iris acquires Isams
Previously a portfolio company of Hg 6, Iris is now owned by Hg Saturn Fund, which closed on £1.5bn
Latest News
Abris exits locomotive leasing business Cargounit to Three Seas
Polish buyout firm Abris Capital Partners has signed an agreement to sell its stake in Polish locomotive lessor Cargounit, also known as Industrial Division, to Three Seas Investment Fund (3SIIF).
Amplify raises $375m across two funds
Amplify IV targets seed and series-A rounds, while Amplify Select makes follow-on investments in existing portfolio companies
Triton completes €387m take-private bid for HiQ International
GP had previously made an offer of SEK 70 per share, which was later increased to SEK 72 per share
Cherry Bay backs Tecnomatic with €17.5m investment
Company intends to boost its production capability, bolster its international expansion and pursue a buy-and-build strategy
