Financial compliance consulting business Complii (ASX: CF1) is set to acquire financial services company MIntegrity to expand its regtech offerings and client base. This follows Complii’s acquisition of online share registry Registry Direct in August 2022. 

As part of the acquisition, the Company has gained control of all of MIntegrity’s assets, including the MIntegrity brand, IP, key personnel and client list. This acquisition will further diversify and add revenue to the Complii Group, while also providing increased scope for cross selling the Group’s service offerings across a wider client base.

Executive Chairman of Complii Fintech Solutions, Craig Mason, commented, “I am delighted to have the MIntegrity team joining us. Their skills, expertise and network will add significant value to Complii. Building on our previous acquisitions of PrimaryMarkets and Registry Direct, this acquisition helps us build our compliance ecosystem further, adding services to our unique technology platform and consolidating our positioning as the “backbone” of Australian equity capital markets.”

The transaction consideration will be paid as issue of 13,000,000 CF1 shares, an initial payment of $150,000 and two further payments of $75,000 over 24 months, subject to the achievement of agreed performance goals. Complii expects MIntegrity to add $1.48 million revenue in its first year, while its earnings were not disclosed. 

Founded in 2013, MIntegrity is an Australian consulting company specialising in risk and compliance. This expertise aligns well with the technology and services already offered by Complii. 

MIntegrity’s solutions include RegsWeb, a digital regulatory web service that combines its regulatory knowledge with access to a digital regulatory library. This complements Complii’s existing compliance model. It also includes MIWize, an e-learning portal with specialised e-learning modules tailored to meet the requirements of financial services practitioners, in accordance with FASEA (Financial Adviser Standards and Ethics Authority) regulations. These modules align with Complii’s existing CPD online management platform, ThinkCaddie.

The co-founders and managing directors of MIntegrity, Andrew Tait and Amanda Mark will be joining the Complii Group for a minimum period of 24 months from the date of completion and will receive 3 million Performance Rights each as an incentive.

Mark shared, “MIntegrity is looking forward to joining the Complii Group and believe this will further strengthen the services offered to financial services firms in Australia and the region. As MIntegrity approaches its 10th year of operations we are excited with the possibilities this opportunity brings.” 

This marks Complii’s second major acquisition in FY23. Over the financial year, it incurred a loss of $5.4 million after reporting a profit of $114,937 in FY22. Its expenses included a one-off payout in relation to Director termination, amounting to $140k.

The Company’s revenue fell by 8.2% to $7.9 million, down from $8.6 million in FY22, driven mainly by the decrease in the trading platform PrimaryMarkets’ transactional revenue due to the poor general global financial market conditions. The Company’s cash outflow was $1.7 million compared to FY22’s cash inflow of $995k.

The MIntegrity acquisition benefits not only the Company but also MIntegrity, whose cash at bank at the end of FY23 fell from $43.2k in FY22 to just $7,099, with its revenue on a downward slope.

Going into FY24, the Company is hoping that its acquisitions of MIntegrity, PrimaryMarkets and Registry Direct can help it land more clients and, subsequently, improve revenue.