360 One Wealth and Asset Management, previously known as IIFL Wealth, has announced the acquisition of the wealth tech platform ET Money from Times Internet. The total deal is valued at Rs 365.8 crore.
What is the Deal Structure?
According to a stock exchange filing on Wednesday, 360 One will pay Rs 85.8 crore in cash to Times Internet. The remaining amount will be settled by issuing 3.5 million shares at Rs 779.93 per share. This transaction will give Times Internet a stake in 360 One Wealth, allowing them to remain invested in the wealth management sector.
Leveraging Synergies
Karan Bhagat, CEO of 360 One WAM, stated that the acquisition would allow both companies to leverage their combined product offerings and expertise. “360 One and ET Money can now utilize our product suite, domain knowledge, portfolio advisory solutions, brokerage services, and credit solutions to a larger user base. This acquisition is expected to accelerate monetization for ET Money through both users and product offerings,” Bhagat said.
Ultra-High-Net-Worth Individuals (UHNIs)
ET Money, which will become a step-down subsidiary of 360 One, primarily caters to ultra-high-net-worth individuals (UHNIs). The acquisition will help 360 One extend its reach into the broader wealth management market that ET Money serves. ET Money has over 9 lakh transacting users and more than 1 lakh revenue-generating users.
ET Money’s Growth
ET Money manages nearly Rs 28,000 crore in assets on its platform, including over Rs 25,000 crore in mutual funds. It tracks overall assets under management (AUM) of approximately Rs 70,000 crore, with gross monthly sales exceeding Rs 1,200 crore. Competing with platforms like Groww, Zerodha’s Coin, and Paytm Money, ET Money’s investment advisory service, ET Money Genius, has over 76,000 active paying clients with an AUM of Rs 1,200 crore.
Entities Involved
360 One will take over two entities: Moneygoals Solutions Limited (ET Money) and Banayantree Services Limited (ET Money Genius). The acquisition is expected to create significant synergies, leveraging their combined product offerings and expertise.
Strategic Goals
360 One WAM, which manages assets worth approximately Rs 4.67 lakh crore for over 7,200 high-net-worth and ultra-high-net-worth individuals, aims to use this acquisition to enhance its client segment coverage and reinforce its position as a leading wealth management firm in India. The deal is anticipated to boost 360 One’s capabilities in serving a diverse range of clients and expanding its market presence.
This acquisition marks a significant step for 360 One in the competitive fintech landscape, positioning it for substantial growth and enhanced service delivery in the wealth management sector.
