360 One buys ET Money for $44 million

Wealth management firm 360 One WAM has entered into a definitive deal to buy Times Internet’s fintech platform ET Money for ₹366 crore ($43.8 million), the company said. 

Subject to regulatory approvals, 360 One WAM will acquire 100% of ET Money largely via a stock swap deal and part cash.

According to regulatory filing by 360 One WAM,  the total purchase consideration of ₹3,658,268,700 will discharged partly by payment of cash consideration amounting to ₹858,320,000 and partly by issuance and allotment of 3,590,000 fully paid-up equity shares of the the buying firm at a price of ₹779.93 per equity share. 

“The acquisition will aid in completing the flywheel across client segments for 360 One,” the company said in a stock exchange filing.

360 One WAM, previously known as IIFL Wealth Management Ltd, has an aggregate assets of around ₹4,67,000 crore ($56 billion) under management and claims to be India’s premier wealth manager for ultra-high-net-worth individual families.

ET Money is one of India’s biggest Sebi-registered investment advisors by number of clients and among the largest non-brokerage digital platforms for wealth management.

ET Money has more than 900,000 transacting clients with more than 100,000 revenue-generating users. It tracks an overall assets under management (AUM) of ₹70,000 crore. The AUM invested in its platform is nearly ₹28,000 crore of which mutual funds constitute more than ₹25,000 crore. 

The platform has gross monthly sales of over ₹1,200 crore with SIPs amounting to ₹450 crore monthly and MF Net flows of nearly ₹750 crore per month. 

Its unique investment Advisory service, ET Money Genius, has more than 76,000 active paying advisory clients with an AUM of ₹1,200 crore. 

“The acquisition allows 360 One and ET Money to leverage their product suite, domain understanding of the business, portfolio advisory solutions, brokerage services and credit solutions to a large user base,” 360 ONE said. 

The acquisition is expected to result in a strong and faster path of monetisation for ET Money across both users as well as product offerings, it added.