KFintech to acquire Ascent Fund Services to expand into fast growing Global Fund Administration market

KFin Technologies Limited ("KFintech"), a leading provider of investor and issuer solutions to global asset managers, has entered into a definitive agreement with Ascent Fund Services Pte. Ltd ("Ascent") to acquire controlling stake of 51% for US$ 34.7 million, with a path to 100% ownership over the next five years. Post this transaction, KFintech will become the sole promoter of Ascent, and the residual 49% stake will be acquired in three equal tranches of 16.33% each after the end of fiscal year 2028, 2029, and 2030 respectively. The transaction is subject to customary regulatory approvals.

Headquartered in Singapore, Ascent is a fast growing full-suite global fund administrator, having clients across 18 geographies, serving 260 global alternative asset managers managing 576 funds, across all asset-classes, with US$ 24 billion assets under administration. The Company is backed by strong pedigree of founding team and senior management with multiple decades of industry experience, deep operational expertise and proven track record of continuous client acquisition. The acquisition shall expedite KFintech's entry into the fast growing and large market of global fund administration industry having more than US$12 billion annual revenue pool. Ascent will help KFintech to gain an immediate and scaled access to global fund administration market with requisite licenses / permits to render services across multiple international jurisdictions, diversified portfolio of clients, sticky and recurring revenue, and experienced team possessing strong domain expertise.Ascent's client acquisition and service capability backed by KFintech's technology finesse and operational efficiency will enhance the duo's ability to partner with funds throughout a fund lifecycle, and to become a single point provider of global fund services.

Mr. Sreekanth Nadella, Managing Director and Chief Executive Officer of KFintech, said, "We are thrilled to announce the acquisition of Ascent Fund Services. Ascent's global footprint, deep domain expertise, client-centric approach, and ambitious team share our passion and vision for diversified and sustainable growth, and innovation. The partnership will be a force multiplier of KFintech's vision to become the first global fund administrator from India across all asset classes and all business processes. The partnership aims to deliver innovative and tech-driven solutions for global asset managers with multi-asset, multi-currency, and multi-geography fund administration capabilities. KFintech's experience of investing in strategic and synergistic assets bodes well to integrate with Ascent and create long-term value for all our stakeholders."

Mr. Kaushal Mandalia, Co-Founder and Group Executive Chairman, Ascent said, "This acquisition marks a pivotal milestone for our group, strengthening our foundation for long-term success. I am confident that it will empower us to deliver even greater value to our clients, employees, and stakeholders. With this transformation, we are not just expanding, we are redefining fund administration. By building a business that is resilient, technology-driven, and customer-centric, we are positioning ourselves as market leaders. Together, we will unlock new opportunities, enhance our capabilities, and set new industry benchmarks. This is more than growth - it's a bold step towards shaping the future of fund administration."

Mr. Jaideep Mukhariya, Co-Founder and Group CEO, Ascent added, "This acquisition marks an exciting new chapter for our group which represents a strategic and transformative step in strengthening our position in the industry. By combining our expertise and resources, we are positioned to better serve our clients, explore new markets, and stay ahead of the curve in an ever-evolving industry landscape. We are confident that this acquisition will enable us to offer enhanced solutions and services to our clients, while continuing to lead the industry in quality and innovation."

Mr. Samuel Chen, Co-Founder and Group COO, Ascent added, "This acquisition marks a transformative step that will propel our group into a new era of growth, innovation, and customer success. We are incredibly excited about the opportunities ahead and are confident that this acquisition will unlock new possibilities and drive long-term success for our group. Together, we now have an even greater ability to drive innovation, enhance operational efficiencies, invest in cutting-edge technologies and expand our service offerings."

Shares of Kfin Technologies Limited was last trading in BSE at Rs. 1007.40 as compared to the previous close of Rs. 999.20. The total number of shares traded during the day was 65902 in over 2947 trades.

The stock hit an intraday high of Rs. 1026.00 and intraday low of 1002.20. The net turnover during the day was Rs. 66660746.00.

Source : Equity Bulls

Keywords

KfinTechnologies INE138Y01010 KFINTECH Intermediaries Acquisition AscentFundServices