Singapore’s Syfe clinches nod to buy Australia-listed Selfwealth for $54.5m in cash

SINGAPORE - After six gruelling months of preparation, Singapore-based investment platform Syfe has emerged the winner in a three-cornered fight to buy Selfwealth, one of Australia’s largest digital investing platforms.

On April 22, Selfwealth shareholders overwhelmingly voted in favour of Syfe’s all-cash A$65 million (S$54.5 million) offer. 

This translates to 28 Australian cents cash a share.

The resolution was approved with 88.46 per cent of shareholders present and 99.7 per cent of votes cast in favour.

The acquisition will make Syfe one of the largest digital wealth platforms in the Asia-Pacific, said founder and chief executive Dhruv Arora.

The transaction is expected to be completed on May 7 after all remaining conditions, including necessary court approvals, are met or waived.

Selfwealth will then be delisted from the Australian Securities Exchange, and operate as Selfwealth by Syfe.

Ms Samantha Horton, Syfe’s group chief operating officer and head of international operations, will lead the integration on behalf of Syfe. 

Mr Arora believes that now is the time to strengthen Syfe’s presence in Australia.

“Despite the largest intergenerational wealth transfer in history presently under way, a large proportion of Australians are still keeping their wealth in savings accounts, forgoing significant market returns,” he said.

“For many, the missing link is objective, transparent advice and access to the right investment solutions. Syfe is well-placed to tap this opportunity through advice and education, as well as a low-cost, innovative offering that doesn’t compromise on quality,” he said.

Mr Arora added that Selfwealth’s strong user base and credibility in the Australian market make it a natural strategic fit for Syfe.

He told The Straits Times that the premium paid is reflective of the current value that Syfe sees in the Selfwealth business, as well as the future growth and value creation it believes can be achieved by the union.

Customers will benefit from a “significantly improved” digital experience and gain access to Syfe’s technology, product innovation and all-in-one investment offering of global market access, cash management and end-to-end managed wealth solutions, he said.

Mr Arora does not expect any customer churn or departure.

Selfwealth customers will continue to retain the features they already value from Selfwealth’s platform but at an affordable price point. There will be no change to their accounts or investments, he said.

Asked about potential integration challenges, Mr Arora said Syfe is regulated by three of the most respected regulators in the world – the Monetary Authority of Singapore (MAS), Hong Kong Monetary Authority and Australian Securities and Investments Commission – and brings a very high standard of best practice. 

The company also points to how nearly two out of three of its employees are in technology roles.

For now, the priority is obtaining the necessary court approval, Mr Arora said.

Then the real work will start to integrate Syfe and Selfwealth and deliver on the promise to enhance user experience across Syfe’s three core pillars of advice, affordability and access for Australian investors, he added.

Syfe was set up in 2019 with a goal to make wealth management more accessible and affordable using technology and quality advice.

Australia is estimated to have nearly 12 million Australians who have investable wealth of over US$100,000 (S$131,000) each, and that number is growing. 

Singapore-grown Syfe had made a non-binding indicative proposal via its parent company Svava

to acquire all of Selfwealth for A$65 million.

Svava operates wealth management platforms through its Syfe brand in Australia, Singapore and Hong Kong.

Svava became the third company publicly entering the fray to buy Selfwealth, following bids from Australia-based Bell Financial Group and AxiCorp Financial Services in 2024.

At A$65 million, Svava’s offer was at a 133 per cent premium to Selfwealth’s last closing share price of 12 Australian cents on Nov 12, 2024 – the day prior to Bell’s initial offer.

Syfe has grown quickly since its launch in 2019 after receiving its MAS licence in Singapore, where it now has more than 250,000 users.

The Australian transaction aligns with the strategy Syfe outlined during its funding round in August 2024, where acquisitions were identified as a key lever to accelerate its growth and expand its platform.