The latest moves in wealth management across Europe, Middle East and Africa.

Moneyfarm
Moneyfarm, the online investment firm, has bought German robo-advisory business Vaamo as part of an expansion into the European market. 

The financial terms of the deal have not been disclosed. The deal means that Moneyfarm adds Germany to its existing Italian and UK businesses - a sign of M&A deals affecting the digital parts of the wealth management landscape. Vaamo was launched in 2014.

Reports said that Vaamo founders Dr Thomas Bloch and Dr Oliver Vins have joined Moneyfarm’s executive committee. Dr Bloch will be responsible for business in Germany and Moneyfarm’s Europe-wide B2B business. Dr Vins will be responsible for product management and development at Moneyfarm groups in the future.

“With Germany being Europe’s second largest robo-advisory market by AUM; this acquisition is Moneyfarm’s attempt to think outside the box on how to really make their mark in new territory,” Sergel Woldemichael, wealth management analyst at GlobalData, said.

“The move is a clever way for MoneyFarm to enter a new market without the need to set up its own infrastructure from scratch. With Germany being a competitive and saturated market, after setting up an own shop, it would require a lot of effort to catch up with the leaders. The start-ups recognise they are better together than separate in such a cut-throat climate,” Woldemichael continued. A GlobalData survey of wealth managers showed that slightly more than 45 per cent of larger firms in Europe were looking to partner/acquire fintech.

With about 30,000 clients, Moneyfarm has received £60 million ($76.8 million) in backing from investment giant, Allianz Global Investors, UK private equity firm, Cabot Square Capital, and Venture Capital Fund, United Ventures. It first launched in Italy in April 2012. In May this year, Allianz became its lead investor.