Acquisitive fintech and support services firm Fintel, the owner of SimplyBiz and Defaqto, has acquired Synaptic Software from AdvancedAdvT Limited in a £4m deal, subject to regulatory approval.

Fintel paid £3.5m net cash, with an additional £0.5m expenditure committed to development, to begin as soon as possible.

Synaptic services 1,600 advisers and Financial Planners, providing due diligence research, compliance tools and software, including Pathways and Webline, which streamline clients’ journeys.

It was previously owned by Capita but sold to AdvancedAdvT in June in a £44m deal which also included Capita’s other software businesses CIBS, CHKS, Retain, WFM.

AdvancedAdvT buys and invests in software and services businesses with the focus on organic growth and M&A.

The acquisition has been made through Fintel IQ, the firm’s technology and knowledge platform, as a key extension into ‘quote and apply’ workflows for insurance products.

The acquisition is signed off and expected to complete in the coming months, subject to regulatory approval from the FCA.

Ben Rogers and Ian Henry will leave Synaptic Software, remaining in leadership roles with AdvancedAdvT.

Neil Stevens, co-chief executive of Fintel, said: "Synaptic brings many useful additions to our current capabilities, notably the extension of product research and ‘quote and apply’ workflows for protection insurance advice.

“Alongside its standalone software products, Synaptic has also developed a unique offering in Pathways; a native Salesforce user interface for investment and protection advice that is particularly powerful for larger advice businesses. We will be investing in evolving the standalone products and bringing the Webline integrations to Defaqto Engage as a high priority."

Richard Tailby, head of sales at Synaptic, said: "This deal secures accelerated investment and gives us a far bigger distribution platform for future growth."

Synaptic is the fifth business acquired by Fintel this year. It acquired professional advisers' review site VouchedFor and ratings provider AKG for a combined £9.1m last month.

Fintel acquired digital knowledge and competence management system Competent Adviser in July as well as the tax-efficient investment research firm MICAP in the same month.

Defaqto’s adviser software platforms Engage and Centra added AKG’s DFM Financial Strength ratings in September.

Fintel also holds a 25% stake in new Planner tech business Plannr Technologies, which it acquired in June.