Alexforbes completes purchase of Outvest
Integration of the business is already under way
Investment manager Alexforbes has completed the deal to buy Outvest from Outsurance, with integration of the business into the group under way.
Alexforbes said on Friday that the acquisition, first announced last year, will allow it to serve customers across a greater variety of investment needs.
“We believe that combining the transformative power of financial inclusion with leading-edge technology presents a unique opportunity to make an impact on people’s lives by helping them reach their chosen investment outcome,” Viresh Maharaj, executive for retail at Alexforbes, said.
“Outvest fits neatly into our strategy by helping customers set goals, select investments and track their progress over time. This is an incredible leap forward for Alexforbes as we accelerate towards helping our customers personalise their financial journeys. We are excited to integrate with the Outvest team, harness the technology we have acquired and unlock the opportunity to become the digital disruptor.”
Outsurance, one of the biggest success stories on the JSE in the past decade, launched Outvest with fanfare six years ago promising to replicate the success of its insurance business.
Outvest offers goal-based advice and passive investment solutions via a website and an app, combining technology and financial advisers based in a call centre.
However, Outvest failed to gain critical mass, leading to Outsurance’s decision to dispose of the asset, which it deemed noncore.
Outsurance said in August that Outvest “remains a subscale business”, but that clients’ investments will not be affected.
Danie Matthee, CEO of Outsurance, said: “We are proud to have conceptualised and incubated the Outvest platform. The team has built an incredible engine and we are confident that Alexforbes will provide the right environment to realise its full potential.”
Outsurance is making a foray into the Irish market in the latter stages of its 2024 financial year, if all goes according to plan.
Alexforbes’ share price closed down 1.4% at R6.19 on Friday.
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