Netwealth acquires paradino for $14.2M

The A$20M upfront price is A$15M in cash and A$5M in Netwealth shares. The shares are escrowed and released in four equal tranches over four years. Up to A$9M more in earn-out and retention payments depends on milestones, which puts maximum consideration at A$29M. Netwealth will also invest a further A$10M in Paradino over two years. The cash portion comes from reserves and a debt facility. Completion is targeted for the end of October 2026, subject to customary conditions. Paradino supports more than 500 advisers and has A$1.6M in annual recurring revenue, with churn below 1%. It is not yet profitable and is forecast to post an EBITDA loss of about A$3M in FY27. Netwealth expects no material near-term earnings impact and has kept its guidance. The deal gives Netwealth in-house AI engineering talent and moves it from platform administration into advice workflows. For AI founders, the price is about 12.5 times ARR upfront, or about 18 times with the full earn-out. The deal shows that vertical AI tools with sticky adviser usage can find buyers among incumbent platforms before they reach breakeven. The staged payments and four-year share escrow also show that acquirers want the team retained and results delivered after close.