Business News, SMSF, Technology

US fintech firm to enter SMSF admin space


A US-based fintech company is looking to enter the SMSF market through the acquisition of a firm with an established fund administration service.

United States-based fintech firm GoLogiq has entered into a non-binding letter of intent to acquire SMSF administration service provider Shape Super Australia.

The potential purchase is being pursued with the aim of expanding the service offering of financial services company Genfi Financial Group, which is a wholly owned subsidiary of GoLogiq. Specifically, the move is expected to allow the accountants and financial advisers operating under the Genfi umbrella to take advantage of Shape Super’s SMSF administration services.

The terms of the non-binding agreement to date will see GoLogiq acquire 100 per cent of Shape Super but with a view to keep the SMSF administration organisation’s senior staff involved in the operation of the business to ensure a smooth transition and continuity of service delivery.

Consideration for the purchase is expected to be made up of the distribution of GoLogiq common shares and the transaction is forecast to be completed in the second quarter of 2023.

“We look forward to working with the Shape team to integrate their business-to-business SMSF services into our fintech ecosystem,” GoLogiq interim chief executive Brian Suen said.

“The management team has shown themselves to be experts in helping accountants and financial advisers with SMSF services.

“These new SMSF-related service capabilities allow us to leverage and expand our resources and capabilities to accountants, qualified investors and self-managed super funds in Australia.

“We believe our growing fintech ecosystem can help Shape expand their reach and exceed their objectives.”

Shape Super offers a comprehensive SMSF administration service that includes financial reporting, bookkeeping, tax accounting and audit facilitation, and the firm is in its fifth year of operation.

Its users include accountants via an outsourced business-to-business model, financial planners and SMSF trustees, whether or not they are recipients of advice.

The organisation currently services 1500 SMSFs representing over $1.6 billion in assets under administration. It is anticipated the number of SMSFs using its offering will grow to 2000 by the end of the year, which should in turn boost the firm’s assets under administration to over $2 billion over that timeframe.

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