Business News

Class acquisition gains traction

Class acquisition

Superannuation administration service provider Class is reaping the rewards from its acquisition of NowInfinity earlier this year.

A significant number of existing Class clients are taking advantage of the expanded services available to them through the organisation’s acquisition of specialist document provider NowInfinity earlier this year.

To this end, Class has revealed 25,000 of its existing customers have now transitioned across to the NowInfinity platform.

“The figures represent NowInfinity’s biggest year on record and June 2020 was its busiest ever month,” Class chief executive Andrew Russell said.

“Nearly 3500 entities were incorporated using the NowInfinity platform in June and almost 25,000 companies were incorporated in the financial year. This represents 11 per cent of the market.

“The excellent team at NowInfinity is well positioned for accelerated growth this year.”

According to Russell, the acquisition has allowed Class to now provide services its clients had previously demanded.

“Bringing NowInfinity into Class helped us solve an identified problem for our customers, which is simplifying the legal document creation and entity management processes and delivering that within our customer ecosystem,” he revealed.

He also flagged Class’s intention to further develop the suite of products offered to clients and the benefits they will potentially bring to the market.

“As we look to launch new products and grow the NowInfinity business, we will be able to deliver increased automation and interactivity for both Class and NowInfinity customers,” he said.

Data supplied by Class indicates around 20,000 SMSFs currently use the NowInfinity platform, along with about 90,000 trusts.

In addition, 2000 accounting firms servicing 500,000 separate companies are also NowInfinity customers.

Class purchased NowInfinity in January in a transaction valued at $25 million. The associated consideration involved $10 million in cash and $10 million in Class shares, escrowed for two years.

The integration of the organisations was completed ahead of schedule, allowing NowInfinity’s founders to exit the business early.

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