Hong Kong-based wealth management and asset management services provider Prestige Wealth (PWM) has agreed to acquire AI-powered wealth management company Wealth AI.
Under the terms of the agreement, PWM will acquire all the shares of SPW Global, which in turn owns Wealth AI, for a total purchase price of $4.5m.
SPW Global is incorporated in the British Virgin Islands and Wealth AI in the Republic of Singapore.
PWM will pay $3m in cash and the remaining $1.5m in the form of 1,900,000 class A ordinary shares and 500,000 class B ordinary shares issued to Wealth AI and its key employees.
In addition, Wealth AI’s key employees will be retained and will continue to be employed by Wealth AI after the closing of the transaction.
The agreement also includes a third-year period of non-competition and non-solicitation covenants from the seller parties.
The proposed acquisition is expected to be completed in the fourth quarter of 2024.
Established in 2022 by AI experts from top technology companies, Wealth AI is dedicated to the transformative potential of artificial intelligence in wealth management.
The Singapore-based company offers personalised, cost-effective wealth management solutions using AI.
PWM is a wealth management and asset management services provider with a customer base comprising high-net-worth and ultra-high-net-worth clients in Asia.
Through its wealth management service, the company offers customised wealth management products to its clients and provides them with tailored value-added services.
It also offers asset management services through investment funds under its management, discretionary account management services and asset management-related advisory services.
PWM said the acquisition will enhance its technology strength in the AI space and facilitate the development of next-generation AI-driven wealth management solutions for its clients.
