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The major aggregator has completed the total acquisition of the asset finance aggregator, as it continues to build its asset finance network.
Australian Finance Group (AFG) has acquired the remaining 16.7 per cent stake in leading asset finance aggregator, National Finance Alliance Pty Ltd, trading as Fintelligence. AFG paid a final amount of $11.4 million to take its ownership to 100 per cent of the Fintelligence business.
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AFG first acquired a majority (75 per cent) stake in Fintelligence in 2021, with the option to acquire the remaining 25 per cent interest in tranches over a 3.5-year time frame. In September 2023, AFG increased its holding in Fintelligence to 83.3 per cent.
It has since brought in new senior leadership and resources to build the network and has seen AFG’s asset finance market share from 3 to 5 per cent. AFG group has reportedly settled more than $3.3 billion in asset finance settlements in the past 12 months.
Speaking of taking full ownership of the company, CEO of the ASX-listed aggregator, David Bailey, said: “We are delighted to complete the acquisition of this outstanding business. The successful growth in settlements, and the positive opportunities of connecting the two businesses has provided the confidence to bring the transaction forward nearly 12 months ahead of schedule.
“Our investment in Fintelligence supports AFG’s strategy to grow distribution and provide choice for our brokers and their customers.
“The Fintelligence broker network are specialists in their field and AFG has a 30-year track record of supporting brokers in their growth. We are excited at the opportunity to help replicate the success we have seen in the residential market in this growing market.”
Bailey said that the aggregator has been building its asset finance presence through the whole network having rolled out Partner Connect earlier this year with Fintelligence retail brokerage Broli, which is now an in-house referral service for AFG’s existing network of residential brokers who wish to “provide choice for consumers seeking asset finance via a trusted partner”.
The AFG CEO said: “Over the past three years we have been working alongside the team at Fintelligence to ensure a continued focus on delivering value to brokers and their customers.
“We look forward to continuing to work with the Fintelligence team and our network of brokers to support their continued growth and the role they play in providing choice for consumers and a competitive asset finance lending market.”
Fintelligence co-founder Richard Burgess said: “Our focus has always been on growth and innovation. This will now enable the Group to reinforce our leadership position and capitalise on new opportunities that create long-term value for our aggregation partners.”
This strategic acquisition comes as Fintelligence celebrates being named Asset Finance Aggregator of the Year at Momentum Media’s Commercial Finance Awards 2024, held on Thursday (28 November), which the group said was a testament to its innovation, growth, and leadership within the sector.
[Related: New leader appointed for asset finance aggregator]
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