Netwealth Group (ASX:NWL) agreed to acquire 100% of Australian artificial intelligence (AI)-enabled adviser workflow and advice automation provider Scale Up Platform Solutions, trading as Paradino, for upfront consideration of AU$20 million, according to a Tuesday filing with the Australian bourse.
The deal comprises AU$15 million in cash and AU$5 million in company shares, with up to a further AU$9 million in earn-out and retention payments over four years, per the filing.
The company will invest an additional AU$10 million over two years to accelerate Paradino's product development and support its growth.
The acquisition is expected to be completed by the end of October and is not anticipated to have a material impact on near-term earnings, the filing added.