Wealth tech firm FNZ has acquired direct-to-consumer digital investment platform Hatch from Kiwi Wealth for an undisclosed amount.
Founded in 2018, Hatch provides New Zealanders with access to US share markets. The platform has over 130,000 users and has transacted more than $2bn since its launch.
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FNZ New Zealand James McDonnell called the deal ‘a strategic opportunity to gain exposure to New Zealand’s direct to consumer segment.
Under the terms of the acquisition, Hatch would remain as an independent business unit within the FNZ Group.
This would enable the platform to retain and follow its entrepreneurial instincts while gaining access to FNZ’s infrastructure and technology to spur its growth, according to McDonnell.
He further said: “The business has reached a logical point in its lifecycle to pursue ownership transition, and FNZ now has the capability and appetite to build on these foundations in order to achieve a step-change in their growth trajectory.”
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By GlobalDataHatch co-founder and general manager Kristen Lunman noted that the FNZ ownership would give Hatch the necessary investment to grow at the pace a high-growth start-up needs.
Lunman commented: “In the future, with FNZ’s support, we intend to offer our customers further options that put their money to work, provided by the same team and community they are familiar with. FNZ has the resource, appetite, and global footprint to take Hatch to the next level.”
Commenting on the deal, Kiwi Wealth acting chief executive Rhiannon McKinnon remarked that to reach its full potential in the global arena.
In April this year, FNZ launched a new wealth management business in the US in collaboration with State Street.
The development followed the firm’s purchase of a majority stake in State Street’s Wealth Manager Services business in the US.
