Moneyfarm snaps up German robo adviser

The acquisition of vaamo will allow the firm to enter the German market.

Moneyfarm has acquired Germany’s first independent digital wealth manager vaamo allowing the Italian firm, which also has a strong presence in the UK, to expand its European presence.  

Germany will become Moneyfarm’s third market, including the UK and Italy. Vaamo’s  founders and joint CEOs Thomas Bloch (pictured left) and Oliver Vins will join Moneyfarm’s executive committee, the firm said in a media release.

Launched in 2014, vaamo offers regulated fully-managed discretionary portfolios and has a direct to consumer and B2B offering.

It has partnerships with digital bank N26, and 1822direkt, a online only brand belonging to one of Germany’s largest savings banks.

Moneyfarm says the acquisition allows the company to leverage vaamo’s strong market position to accelerate its entrance into Germany.

It also presents the opportunity to expand its business proposition across Europe for companies and financial institutions looking to offer digital investments to their employees or customers.

Both companies will continue to service their individual customer bases, and vaamo will retain its brand name, as they determine how the two companies can work together.

Giovanni Daprà (pictured right), CEO and Co-Founder of Moneyfarm, says vaamo’s foothold in the German market and established B2B offering made them an attractive acquisition.

“Their shared preference for providing regulated investment advice, over an execution-only service, is in line with our investment ethos and was a key consideration in the process,” he said.

The transaction is subject to regulatory approval by German supervisory authority BaFin. Law firms Taylor Wessing and Greenfort advised on the deal, and Capitalmind was the M&A advisor with Deloitte advising on due diligence.

Moneyfarm, the trading name of MFM Investment Ltd, is regulated by the FCA, and has secured close to £60 million in capital since launch.

The company is led by co-founders Paolo Galvani and Giovanni Daprà.