Netwealth to acquire Paradino (Investor Presentation)

Key points

• Acquisition of Paradino for $20M upfront with a potential $9M earn-out
• Additional $10M investment planned over two years
• Expected to complete by end of October 2026
• Aims to increase adviser productivity by 38%
• Paradino to be reported separately from Netwealth's underlying business

Full summary

Netwealth Group Ltd announced the acquisition of Paradino, a leading AI advice automation and productivity platform for Australian financial advisers. The acquisition is valued at $20 million upfront, with an additional $9 million earn-out potential. Netwealth will also invest an additional $10 million over two years to accelerate Paradino's product roadmap. The acquisition is expected to complete by the end of October 2026. This acquisition supports Netwealth's Dx30 strategy to significantly increase adviser productivity and differentiate its proposition. Paradino can save an adviser 9+ hours per week, generating 38% in efficiencies, equal to advising 46 additional clients, administering $33 million additional FUA, and generating $213,000 in additional fees. The adviser cost is less than $5,000 per annum with a payback period of less than one month.

Guidance

Netwealth will maintain existing guidance on a pre-acquisition basis

Outlook

Netwealth expects Paradino to deliver an EBITDA loss of approximately $3 million in FY27