Digital wealth manager Moneyfarm has entered the German market with the acquisition of Vaamo, Germany’s first independent digital wealth manager.
The move sees the company continue its European expansion after establishing a presence in the UK and Italy.
Both companies offer regulated fully managed discretionary portfolios, and Vaamo has partnerships with leading German digital banks such as N26 and 1822direkt.
In a statement Moneyfarm said the acquisition allowed the company to accelerate its entrance into Germany, which, it noted, is “home to the world’s top savers”, with the average household saving 9% of their income.
Strong foothold
“Vaamo’s strong foothold in the German market and established B2B offering made them an attractive acquisition to further cement our position as a pan-European investment provider,” said Giovanni Daprà, chief executive and co-founder of Moneyfarm.
“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.
Thomas Bloch, co-founder and co-chief executive of Vaamo said: “Moneyfarm’s acquisition of Vaamo marks an exciting new phase of growth for both companies, as we look to combine our European experiences to provide more personalised and innovative investment advice solutions internationally.
“We’re looking forward to combining Moneyfarm’s award-winning investment services with Vaamo’s foothold in the German market to accelerate growth and become a pan-European leader.”
Bloch and fellow co-founder and co-chief executive Oliver Vins will join Moneyfarm’s executive committee.
Important step
Daprà added: “Since launching in 2012, we’ve always envisaged Moneyfarm becoming a truly pan-European company. As this acquisition marks us entering our third European market, it is an important step in realising this mission.
“Germany is not only a core European market, but it’s also home to a nation of savers who are open to using innovative technology to make money management and investing simpler.
“However, investment advice still remains out of reach for many, as is the case across Europe. This is an exciting opportunity for Moneyfarm, as this combination of factors makes Germany fertile ground for digital wealth management to flourish.”
