The Australian Finance Group (AFG) has increased its presence in the region through the acquisition of Fintelligence, a prominent asset finance aggregator. The Group has acquired a 75% stake in Fintelligence for $52.2 million.
Additionally, the Australian Finance Group has an exclusive option to purchase the remaining 25% stake in Fintelligence over the next three and a half years. Through the acquisition, AFG will be able to enhance the availability of white label and securitized asset finance products.
Established in 2018, Fintelligence is one of the fastest-growing technology-enabled asset finance aggregation platforms. The company is based in Queensland with a substantial national presence.
“This acquisition represents a significant opportunity to build a fast-growing, technology-enabled asset finance aggregation business of scale. It will drive growth in AFG’s asset finance volumes, market share for the combined group, and more lender and product opportunities for brokers and their customers. In addition, the acquisition allows AFG to increase the availability of white label and securitized asset finance products to meet the needs of our brokers and customers,” David Bailey, the CEO of AFG, commented on the acquisition.
Following the announcement, the shares of AFG jumped significantly in the market.
Growth Opportunity
According to the Australian Finance Group, the transaction provides an opportunity for all stakeholders of AFG to take advantage of the Group’s flexibility and diversification. The mentioned acquisition is expected to be completed by 31 December 2021.
Darren Rumble, Fintelligence Head of Partnerships said: “This represents a great opportunity to become the leading aggregator partner across all sectors allowing AFG and Fintelligence clients to maximize their customers’ choices through product, service, innovation and industry-leading technology. It’s going to be an exciting 2022 and beyond.”
Bailey said that the Group is planning to collaborate with the management of Fintelligence and a network of brokers to help fast-track growth and drive greater competition in the Australian asset finance market.
