By Digifin Pty Ltd · About this coverage
Key Points
- Agreed terms to acquire 100% of Paradino (Scale Up Platform Solutions)
- Upfront $20m: $15m cash and $5m shares escrowed over four years
- Up to further $9m earn-out and retention over four years if milestones met
- Further $10m investment in Paradino planned over the next two years
- Completion expected by end October 2026, subject to customary conditions
About Netwealth (ASX:NWL)
Netwealth Group Limited is an ASX-listed wealth management company headquartered in Melbourne. It runs a technology platform that financial advisers and their clients use to hold, trade and administer superannuation, pension and ordinary investment portfolios. Revenue is earned mainly as fees charged on the assets administered on the platform, and the company competes with bank-owned platforms and other specialist providers.
Netwealth (ASX:NWL) has agreed terms to acquire Paradino to push beyond platform administration into AI-enabled advice workflow automation in support of its Dx30 ambition.
It will buy 100% of Scale Up Platform Solutions Pty Ltd, trading as Paradino, an Australian AI-enabled adviser workflow and automation provider. Upfront consideration is $20 million, comprising $15 million cash and $5 million in Netwealth ordinary shares escrowed and released in four equal tranches over four years, with up to a further $9 million in earn-out and retention consideration payable over four years subject to agreed outcomes and milestones. Netwealth will also invest a further $10 million in Paradino over the next two years. Paradino supports more than 500 financial advisers, generates annual recurring revenue of $1.6 million and reports churn of less than 1%. The cash consideration will be funded from cash reserves and a debt facility. The transaction is not expected to have a material impact on near-term earnings. Existing financial guidance is maintained on a pre-acquisition basis. As an early-stage business, Paradino has not yet achieved break even, and its EBITDA is expected to be a loss of approximately $3 million in FY27. Paradino's financial performance and the additional investment will be reported separately from underlying results.
Completion is expected by the end of October 2026 and remains subject to customary conditions precedent. Earn-out payments depend on satisfaction of agreed milestones.
Source: Netwealth Group Limited (ASX:NWL), 15 September 2026. Summary content supplied by Digifin Pty Ltd.
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