Netwealth Group Limited has agreed to acquire Scale Up Platform Solutions Pty Ltd, the Australian technology firm that trades as Paradino, in a move designed to strengthen its artificial intelligence capabilities for financial advisers. The transaction will involve upfront consideration of A$20 million and up to A$9 million in earn-out and retention payments, bringing the total potential consideration to A$29 million over four years. Completion is expected by the end of October 2026, subject to customary conditions.
Strategic Rationale and Market Opportunity
The acquisition supports Netwealth's Dx30 ambition by automating time-intensive advice workflows such as file notes, Records of Advice, and customer profiling. Australia's growing wealth and retirement savings are increasing demand for financial advice, but adviser capacity remains a key constraint on client service. By releasing adviser capacity through automation, the combined offering aims to help practices serve more clients while maintaining quality and consistency.
Expanding Beyond Platform Administration
Historically, Netwealth has played a central role in advice implementation and administration through its platform capability. The Paradino acquisition broadens the company's role across the advice value chain by adding document preparation, workflow management, and client communication tools. This shift is expected to create a more integrated experience for advisers and increase the value Netwealth delivers in day-to-day practice operations.
Technology Integration and Data Ambitions
Paradino's core platform centres on its Athena AI capability, which automates advice documents, meeting notes, and related administrative activities. Netwealth intends to combine this technology with its Unify data platform, which aggregates and organises information from dozens of sources. Over time, the integration is expected to extend AI-driven advice workflows and strengthen Netwealth's broader ecosystem.
Leadership Perspectives on the Deal
Netwealth chief executive Matt Heine said the acquisition would help advisers increase productivity, support more clients, and spend more time delivering advice. He noted that combining Paradino's workflow capability with Netwealth's platform and data could create a leading AI-enabled wealth management and adviser productivity platform. Paradino co-founder Alex Gassner said Netwealth's distribution and investment capacity would accelerate the company's product roadmap.
Financial Terms and Investment Plans
Under the agreed terms, Netwealth will pay $15 million in cash and $5 million in ordinary shares upfront, with the equity escrowed and released in four equal annual tranches. A further A$9 million may be paid over four years in earn-out and retention consideration, subject to agreed milestones. Netwealth also plans to invest an additional A$10 million into Paradino over the next two years to accelerate product development and support adviser growth.
Financial Impact and Reporting
Paradino is an early-stage business and has not yet reached break even, with an expected EBITDA loss of about A$3 million in FY27. Netwealth's existing financial guidance is maintained on a pre-acquisition basis, and the transaction is not expected to have a material near-term earnings impact. The company will report Paradino's financial performance and the additional investment separately from its underlying results.
The acquisition positions Netwealth to deepen its support for financial advisers through AI-enabled automation and workflow technology. It also signals a strategic expansion beyond platform administration into the advice production process. If completed as expected, the deal is likely to strengthen Netwealth's long-term growth ambitions while giving Paradino access to the resources needed to scale across the Australian advice market.