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FINEOS (ASX:FCL) - Founder and CEO, Michael Kelly (far right) - The Market Herald
Founder and CEO, Michael Kelly (far right)
Source: Victoria Jamison [FINEOS]
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  • FINEOS (FCL) has entered a binding agreement with DigIn Technologies to acquire 100 per cent of Spraoi’s issued securities
  • To finalise the deal, FCL will fork out US$4 million (roughly A$5.2 million) upfront and allow Spraoi to earn up to US$6.6 million (around A$8.5 million) over three years if it meets certain revenue checkpoints
  • The acquisition will be funded by existing cash reserves and the issue of 700,000 share options to Spraoi’s three founders and team of 23 employees
  • FINEOS says the addition of Spraoi’s product and service offerings are a strategic addition from which it can leverage its existing client base and product capabilities
  • FINEOS shares are down 1.51 per cent, trading at $3.92

FINEOS (FCL) has entered a binding agreement with DigIn Technologies to acquire 100 per cent of Spraoi’s issued securities.

Founded in 2017, Spraoi is a provider of machine learning capabilities for the employee benefits and life industry. Spraoi currently has eight clients and achieved revenues of US$6 million (around A$7.76 million) during the 2020 calendar year.

To finalise the deal, FCL will fork out US$4 million (roughly A$5.2 million) upfront and allow Spraoi to earn up to US$6.6 million (around A$8.5 million) over three years if it meets certain revenue checkpoints.

The acquisition will be funded by existing cash reserves and the issue of 700,000 share options to Spraoi’s three founders and team of 23 employees.

FINEOS says the addition of Spraoi’s product and service offerings are a strategic addition, from which it can leverage its existing client base and product capabilities. It says the acquisition will enable it to make the best use of machine learning across the three pillars of the FINEOS platform; core, digital and data.

It believes Spraoi’s machine learning capabilities and service framework will increase digital service reach, reduce customer service friction and provide much greater insight into the carrier and customer dynamic across the entire customer lifecycle. FINEOS hopes this will make its platform an even more attractive offering to the employee benefits and life assurance industry.

“Spraoi’s technology offering and services have allowed our clients to successfully optimize outcomes and see measurable ROI,” said co-founder of Spraoi, Karan Mishra.

“Our deep machine learning, data and customer experience capabilities coupled with the robust FINEOS platform enables clients to have a one-of-a-kind pre-integrated platform to get the most out of their technology investments.”

FINEOS shares are down 1.51 per cent, trading at $3.92 at 11:35 am AEST.

FCL by the numbers
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