Wealthtech startup PureFacts Financial Solutions has acquired Xtiva Financial Systems as part of the former’s growth strategy for its revenue management solutions.
According to Toronto-based PureFacts, the deal combines its infrastructure for gross and net fee calculations and reporting, with Xtiva’s technology and expertise in incentive and performance compensation management. This consolidated entity, which will operate under the PureFacts umbrella, is expected to offer a “complete” revenue management solution.
PureFacts claims it has over 100 clients with a combined $10 trillion in assets under management.
“We know that better revenue management leads to greater revenue growth, and a key piece of that puzzle is developing and managing strategic incentive compensation plans,” said Robert Madej, founder, and CEO of PureFacts.
A spokesperson for PureFacts told BetaKit that the deal was funded through PureFacts’ operating cash flows and debt financing from its existing primary lender, Scotiabank.
All of Xtiva’s 50 employees will join PureFacts. Executives from Xtiva, including CEO Thomas J. Moysak, will join PureFacts’ leadership team.
PureFacts said that the leadership teams will work together to integrate both companies’ development, back-office, and go-to-market activities.
Founded in 1998, Xtiva provides sales performance and incentive compensation management software for the wealth management industry. Xtiva is backed by Recurring Capital, which led its $10 million USD financing round in 2020. That round also represents Xtiva’s total funding raised prior to its acquisition.
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Led by Madej, PureFacts claims it has over 100 clients with a combined $10 trillion in assets under management. Beyond revenue management, PureFacts provides a number of solutions to the financial services industry, including enterprise reporting, artificial intelligence for investor retention and retirement income insights, as well as data management.
PureFacts has acquired a number of companies in the past as part of its growth plans for its other offerings. In 2020, PureFacts acquired two companies. One was Quartal Financial Solutions, a European provider of fee billing and commission solutions for the financial and insurance industries. The other was CRM consulting firm VennScience.
Featured image from PureFacts.