The deal will extend Defaqto's fund research and ratings capabilities for financial services and investment professionals.

RSMR was set up in 2004, launching its ‘R’ ratings to advisers and their clients through advice technology, platforms, provider channels and directly from the RSMR portal.

Defaqto said it will continue to invest in Yorkshire-based RSMR as a part of its strategy to build out a comprehensive research and ratings platform, covering all retail financial services products.

John Milliken, chief executive at Defaqto, said: “Defaqto is rapidly expanding through a combination of organic growth and acquiring some highly-regarded businesses that have clear adjacencies in terms of capabilities and customers.”

Last year Defaqto owner Fintel added AKG and MICAP to its business and Mr Milliken said they have, “already made significant contributions to the growth of Defaqto.”

Ken Rayner, chief executive at RSMR, said, “Joining together with Fintel will allow us to promote our services to a much broader base through the group’s complementary businesses and leading brands.”

He said he had worked with the management team at Fintel for more than 15 years and, “have huge admiration for the business they have built and their unwavering focus on the intermediary market.”

Matt Timmins, joint chief executive of Fintel, said: “I have worked with Ken, Geoff and the team at RSMR for a long time and admire their research methodology, independence and dedication to the market. Their history, pedigree and ambition will add significantly to our business.”

RSMR was set up in 2004 by Geoff Mills, Ken Rayner and Caroline Spencer after the trio left building society Bradford & Bingley. It provides independent investment research and support services to advice businesses, offering its first fund ratings in 2006. More than 15,000 financial professionals across the UK now use RSMR ratings, the company said.

Fintech and adviser support firm Fintel, which owns Simply Biz as well as Defaqto, acquired support services firm Threesixty from Abrdn for £14.6m earlier this month.

It has completed four other complementary acquisitions and investments since the start of the year. These included the acquisitions of Synaptic Software, Owen James and ifaDASH, alongside significant investment in Mortgage Brain.

In March it revealed it had invested £1.5m in Mortgage Brain and acquired 70% of fintech ifaDASH for up to £1.5m.

Those acquisitions followed the group's investment in CRM entrant Plannr, announced last June. Fintel also acquired financial services event firm Owen James Events for up to £2.3m in January and acquired Synaptic Software from AdvancedAdvT Limited in a £4m deal in December.