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Invesco (IVZ) Acquires Intelliflo to Expand in the U.K.

Zacks Equity Research
Updated

Invesco Ltd. IVZ recently announced that it has acquired the leading U.K.-based advisor-focused digital solutions firm, Intelliflo from HG Capital Trust. The financial terms of the deal, not expected to have any material impact on the company’s earnings, were kept under wraps.

Invesco’s plan to resume share repurchase by this year-end, following the reduction in its debt leverage, will not be impacted by this acquisition.

Why Intelliflo?

Martin L. Flanagan, President and CEO of Invesco said, “We fully recognize that digital solutions are increasingly important as we seek to improve the support we provide for advisors to help them and their clients achieve their desired investment outcomes.”

The U.K. operations continue to remain in focus for Invesco. Intelliflo, being the top technology platform for financial advisors in the country, was an obvious choice.

Notably, Intelliflo supports nearly 19,000 investment advisors who manage more than £300 billion of assets on behalf of their clients. Also, the company’s revenues have witnessed a CAGR of 19% in the past three years.

Further, Intelliflo's Intelligent Office ("iO") software platform is the mainstay of the U.K. wealth management sector. iO operates from a single instance, multi-tenant SaaS platform, which aids integration and connectivity, high scalability and rapid functionality development.

Going Forward

The use of technology is the need of the day.

Invesco’s efforts to increase the use of technology to help clients is not new. In 2016, the company had acquired Jemstep, a Silicon Valley-based provider of advisor-focused digital solutions. This deal supported the company’s advisors with the advanced and flexible tools, helping to deliver professional advice to their clients online.

Now, Invesco expects the acquisition of Intelliflo to do the same in the U.K. market. Colin Meadows, Senior Managing Director and Chief Administrative Officer for Invesco said, “We look forward to seeing what Intelliflo can achieve for UK advisors with increased product investment.”

Thus, these initiatives are expected to support Invesco’s growth prospects. However, high-debt levels and mounting expense level remain major concerns for the company in the near term.

The stock has lost 23.8% so far this year compared with 3.4% decline for the industry it belongs to.


 

Currently, Invesco carries a Zacks Rank #4 (Sell).

Stocks Worth Considering

Some stocks in the same industry worth a look are Lazard Ltd LAZ, Prospect Capital Corporation PSEC and Noah Holdings Limited NOAH. All these carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lazard’s current-year earnings estimates have moved 12% upward over the last 60 days. Its share price has increased 4.3% in the past six months.

Prospect Capital’s 2018 earnings estimates have been revised 2.7% upward over the past 60 days. Its shares have gained 1.3% in the past six months.

Over the last 60 days, Noah Holdings witnessed an upward earnings estimate revision of 23% for the current year. Its share price has jumped 51.9% in the past six months.

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Invesco Ltd. (IVZ) : Free Stock Analysis Report
 
Lazard Ltd (LAZ) : Free Stock Analysis Report
 
Noah Holdings Ltd. (NOAH) : Free Stock Analysis Report
 
Prospect Capital Corporation (PSEC) : Free Stock Analysis Report
 
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