Consultancy licensee Centrepoint Alliance has secured the technology provider, with the sale expected to close in the next few weeks.

Chant West Holdings said it had been interested in the Enzumo business for “some time”, which it had hoped to pursue after the sale of its other company, super research house Chant West, was completed.

But the $12.5 million sale, previously agreed to Zenith subsidiary CW Bidco in February, was shelved after the company cooled amid coronavirus-shaken market conditions.

Chant West Holdings then commenced proceedings against CW Bidco in April, seeking an order to force it to complete the sale. Chant West said it would provide an update on the dispute later this month.

With the research center transaction lagging behind, the company decided to postpone the sale of Enzumo.

Chant West Holdings chief executive Brendan Burwood said his firm believed the deal was the best outcome for all parties involved.

"We have considered the interest shown by a number of parties and we believe that Centrepoint Alliance's offer provides the best value for shareholders," Mr Burwood said.

"Enzumo and his brother have made excellent progress over the last period and are well placed to continue that performance."

Enzumo's clients include larger banks, mid-tier financial institutions, mid-sized financial advisory and dealer groups, and individual financial advisory practices.

Centrepoint chief executive Angus Benbow said the acquisition was the latest step in his company's transformation and would boost its technology offering in the consultancy sector.

"Covid-19 has completely redefined the role of technology in the delivery of advice and will accelerate the wider use of technology across the sector," Mr Benbow said.

“As part of our strategic renewal, we anticipated increased demand for technology support services from both our authorized representatives and self-licensed businesses. We are already making significant investments, including the introduction of the Centrepoint Connect online adviser portal and the development of an AI-enabled practice management tool Centrepoint Adviser Intelligence.”

He added that the acquisition will further drive Centrepoint's transition to a recurring fee-based revenue model, which began in August 2018. – with both businesses operating on subscription-based models.

"Recurring consultant fees are now our biggest source of revenue and have increased by 37 per cent in the first half of FY20," Mr Benbow said.

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting mainly on banking, financial services and wealth.

Prior to joining the team in 2018, Sarah worked in commercial media and produced stories for a current affairs program on public radio.

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